According to Manhattan court filings filed Sunday, SVB Financial (SIVB.O), the insolvent parent company of Silicon Valley Bank, lost access to its financial data when the FDIC placed the bank into receivership.
SVB Financial’s venture capital and investment banking operations, which were not included in the FDIC’s takeover, are considering bankruptcy. A breakdown in collaboration with the bridge bank set up to take over SVB’s business has made its Chapter 11 bankruptcy “difficult,” according to SVB Financial Chief Restructuring Officer William Kosturos’ declaration filed Sunday in U.S. bankruptcy court.
SVB Financial has no workers, and the new bank’s staff “shut off access” to a large chunk of its “books, documents, files, electronic systems and critical personnel,” according to Kosturos.
Kosturos said SVB Finance is restoring access.
A week after California banking authorities shuttered Silicon Valley Bank, SVB Financial filed for bankruptcy.
The FDIC is trying to sell SVB and may split apart the bankrupt company.
According to court filings, the FDIC receivership destroyed SVB Financial’s main funding source and much of its corporate infrastructure, causing debt defaults and bankruptcy.
SVB Financial’s court papers indicated $19 billion in assets, $2.2 billion in cash and cash equivalents, and $3.4 billion in liabilities. SVB Financial’s banking operation, seized by authorities, was worth $15.5 billion.
According to Kosturos’ statement, SVB Capital’s venture capital and credit investment arm handle $9.5 billion in other investors’ money across 30 pooled investment funds.
These funds include direct venture funds, funds-of-funds, and debt funds that lend and finance startups.
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