SVB's parent company files for 'reorganisation' bankruptcy

Not all subsidiaries included

SVB Financial Group, Silicon Valley Bank's parent company, has filed a voluntary petition for Chapter 11 bankruptcy in New York today (17 March).

Chapter 11, also known as ‘reorganisation bankruptcy', usually allows a debtor to remain in possession and have the powers and duties of a trustees, the US Courts explained. The business may continue to operate and, with court approval, borrow money. The reorganisation plans may have to be voted on by the creditors affected and, if approved, they may be confirmed by the court, subject to certain legal requirements. SVB Financial Group said SVB Securities and SVB Capital's funds and general partner entities have not been included in the bankruptcy filings and the businesses will contin...