New York (CNN) – SVB Financial Group, the company that owns the failed Silicon Valley bank that was acquired by the US government last week, has filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code.
The Silicon Valley bank was not included in the presentation in New York on Friday. Also not included in the Chapter 11 process were venture capital firm SVB Capital and brokerage firm SVB Securities, which will continue to operate.
Trading in shares of SVB Financial Group has been halted since Thursday and bankruptcy was widely expected.
“The Chapter 11 process will allow SVB Financial Group to preserve value while evaluating strategic alternatives for its business and its valuable assets, particularly SVB Capital and SVB Securities,” William Kostoros, Head of Restructuring at SVB Financial Group, said in a statement.
She added, “SVB Capital and SVB Securities continue to operate and serve clients, led by longstanding and independent leadership teams.”
SVB Financial said it has $3.3 billion in unsecured debt and $3.7 billion in equity that could disappear in bankruptcy.
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