SVB Financial Group, whose Silicon Valley bank was taken over by US banking regulators last week, is exploring seeking bankruptcy protection as an option to sell assets that include its investment bank and venture capital firm, people familiar with the matter said.
The group said on Monday it was studying strategic alternatives to its assets, but did not disclose bankruptcy as one of the possible options.
According to the sources, the group has not yet made a final decision on the path it will take and is still trying to find investors to buy its assets without filing for bankruptcy, which is also an option.
One of the sources stated that the financial group is also exploring other alternatives to restructure and recapitalize its investment bank and venture investment unit.
In addition to looking for buyers for assets, companies in such situations sometimes try to find investors to inject new money into a project.
The collapse of “Silicon Valley” .. the story of a bank that disturbed entrepreneurs
US regulators took emergency action earlier this week in the aftermath of the collapse of Silicon Valley, including guaranteeing uninsured deposits with the bank.
Potential buyers often hesitate when distressed companies try to sell assets.
One reason for this is that a pre-bankruptcy transaction can be canceled if the company later seeks Chapter 11 protection within a certain time frame.
It is worth noting that the investment bank and the venture investment company of the (SVB) financial group are separate from Silicon Valley Bank.
