Exhibit 99.1
SVB Financial Group Files “First Day Motions” to Support Continued Operations of SVB Capital and SVB Securities and Preserve Value for Stakeholders
SANTA CLARA, Calif., March 20, 2023—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.
