SVB Financial Group SIVB, -60.41% said Friday it has filed for Chapter 11 bankruptcy in New York and will seek a court-supervised reorganization. The company said the filing does not include SVB Capital or SVB Securities funds and general partner entities, which are continuing to operate as SVB Financial explores its strategic options. SVB Financial is no longer affiliated with Silicon Valley Bank, which was placed in receivership last week after a run on its deposits. The company believes it has about $2.2 billion of liquidity.
“In addition to cash and its interests in SVB Capital and SVB Securities, SVB Financial Group has other valuable investment securities accounts and other assets for which it is also exploring strategic alternatives,” the company said in a statement. Its funded debt is about $3.3 billion and it has $3.7 billion of preferred equity. “The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” said William Kosturos, chief restructuring officer for SVB Financial Group, in the statement. The filing was made in the US Bankruptcy Court for the Southern District of New York. SVB Financial stock has been halted since last week.