SANTA
CLARA, Calif., March 20,
2023 /PRNewswire/ -- SVB Financial Group ("the
Company") (Nasdaq: SIVB) today announced that it has filed a number
of "First Day Motions" seeking authorization from the United States
Bankruptcy Court for the Southern District of New York to support the continued operations
of the Company's SVB Capital and SVB Securities businesses and
preserve value for the benefit of stakeholders. These motions seek
court authorization, among other things, to provide for the
continued separation of these business operations from Silicon
Valley Bridge Bank, N.A., ensure access to cash, enable cash
management systems, and protect valuable tax attributes.
"We appreciate the support and patience of SVB Financial Group's
stakeholders as we continue to take action to maximize recoverable
value, including the exploration of strategic alternatives for the
SVB Capital and SVB Securities businesses," said William Kosturos, Chief Restructuring Officer
for SVB Financial Group. "These businesses continue to operate and
serve clients, led by their longstanding and independent leadership
teams."
As previously announced, SVB Financial Group filed a voluntary
petition for a court-supervised reorganization under Chapter 11 of
the U.S. Bankruptcy Code on March 17,
2023. SVB Securities and SVB Capital's funds and general
partner entities are not included in the Chapter 11 filing and
continue to operate in the ordinary course. SVB Financial Group is
no longer affiliated with Silicon Valley Bank, which now operates
as Silicon Valley Bridge Bank, N.A. under the jurisdiction of the
Federal Deposit Insurance Corporation.
SVB Financial Group intends to use the court-supervised process
to evaluate strategic alternatives for SVB Capital, SVB Securities
and the Company's other assets and investments. This process is
being led by a five-member restructuring committee appointed by the
SVB Financial Group Board of Directors. Centerview Partners LLC is
assisting the restructuring committee with the strategic
alternatives process, which is already underway and has attracted
significant interest. Any sale process will be conducted through
the Chapter 11 proceeding and be subject to court approval.
SVB Financial Group expects to seek approval for its First Day
Motions at a court hearing scheduled for Tuesday, March 21, at 3:00
p.m. Eastern Time.
Court filings and other information related to the SVB Financial
Group's Chapter 11 proceeding is available on a website
administrated by the Company's proposed claims agent, Kroll, at
https://restructuring.ra.kroll.com/svbfg/; or by emailing
SVBFGInfo@ra.kroll.com.
Centerview Partners LLC is proposed financial advisor, Sullivan
& Cromwell LLP proposed legal counsel and Alvarez & Marsal
proposed restructuring advisor to SVB Financial Group as
debtor-in-possession.
Information for Holders of The Company's Common Stock and
Depositary Shares
On March 17, 2023, the Company
received a notice from The Nasdaq Stock Market LLC ("Nasdaq")
advising the Company of its failure to satisfy one or more
continued listing rules or standards of Nasdaq. Trading of the
Company's common stock and the Company's Depositary Shares on
Nasdaq was halted on March 10, 2023,
and will be suspended on March 28,
2023. Nasdaq will file a Form 25-NSE with the United States
Securities and Exchange Commission, which will remove the Common
Stock and Listed Depositary Shares from listing and registration on
Nasdaq. The Company does not plan to appeal Nasdaq's decision.
Following the removal of the Common Stock and Registered
Depositary Shares from listing and registration on Nasdaq, the
Common Stock or Registered Depositary Shares may then be
immediately eligible to be quoted on the OTC Pink Quotation System.
If the Common Stock or Registered Depositary Shares are delisted
from Nasdaq, there can be no assurance that a market maker will
apply to quote the Common Stock or Registered Depositary Shares or
that the Common Stock or Registered Depositary Shares will be
quoted in the OTC Pink Quotation System.
About SVB Financial Group
SVB Financial Group (Nasdaq: SIVB) is the holding company for
SVB Capital and SVB Securities.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are subject to known and unknown
risks and uncertainties, many of which may be beyond SVB Financial
Group's control. Forward-looking statements are statements that are
not historical facts and generally can be identified by the use of
such words as "becoming," "may," "will," "should," "could,"
"would," "predict," "potential," "continue," "anticipate,"
"believe," "estimate," "seek," "expect," "plan," "intend," the
negative of such words or comparable terminology. Although SVB
Financial Group believes that the expectations reflected in SVB
Financial Group's forward-looking statements are reasonable, SVB
Financial Group has based these expectations on its current beliefs
as well as its assumptions, and such expectations may not prove to
be correct. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside SVB Financial Group's control. Forward-looking
statements related to the offerings and SVB Financial Group's
actual results of operations and financial performance could differ
significantly from those expressed in or implied by SVB Financial
Group forward-looking statements. The forward-looking statements
included in this disclosure are made only as of the date of this
disclosure. SVB Financial Group does not intend, and undertakes no
obligation, to update these forward-looking statements.
Media Contact
Media Only:
Joele Frank, Wilkinson Brimmer
Katcher
Michael Freitag / Jed Repko / Aaron
Palash
212-355-4449
svbmediainquiry@joelefrank.com
Investor Contact
Investors Only:
ir@svb.com
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SOURCE SVB Financial Group