March 19 (Reuters) – SVB Monetary (SIVB.O), the bankrupt guardian firm of Silicon Valley Financial institution, has misplaced entry to its monetary data after the financial institution was positioned into receivership by the Federal Deposit Insurance coverage Company (FDIC), in keeping with court docket paperwork filed in Manhattan on Sunday.
SVB Monetary is exploring choices, together with a possible chapter sale, for its enterprise capital and funding banking companies, which weren’t included within the FDIC’s takeover of SVB. However its Chapter 11 chapter has gotten off to a “difficult” begin as a result of a breakdown in cooperation with the bridge financial institution set as much as take over SVB’s enterprise, in keeping with a declaration filed Sunday by SVB Monetary Chief Restructuring Officer William Kosturos in U.S. chapter court docket.
SVB Monetary has no staff of its personal, and the brand new financial institution’s staff “lower off entry” to a considerable portion of SVB Monetary’s “books, data, information, digital methods and key staff,” in keeping with Kosturos.
Kosturos stated SVB Monetary is working to re-establish entry.
SVB Monetary filed for chapter safety on Friday, a couple of week after California banking regulators closed Silicon Valley Financial institution within the largest U.S. financial institution failure because the 2008 monetary disaster.
The FDIC is making an attempt to promote SVB and will search a breakup of the failed lender.
The FDIC receivership eliminated SVB Monetary’s main supply of liquidity and most of its enterprise infrastructure, in addition to triggering defaults on SVB Monetary’s debt, forcing the corporate out of business, in keeping with court docket paperwork.
SVB Monetary’s court docket filings listed $19 billion in property, $2.2 billion in money and money equivalents, and $3.4 billion in liabilities. About $15.5 billion of SVB Monetary’s asset worth was attributed to the SVB banking enterprise that was seized by regulators.
SVB Capital, the enterprise capital and credit score funding arm of the corporate, manages about $9.5 billion in different buyers’ cash unfold throughout 30 pooled funding funds, in keeping with Kosturos’ declaration.
These funding funds embody direct enterprise funds that spend money on corporations, funds-of-funds that spend money on different enterprise capital funds, and debt funds that present lending and different financing options to startups.
SVB Securities is an funding financial institution that gives monetary providers to healthcare and know-how corporations, in keeping with Kosturos’ declaration.
In its court docket filings on Sunday, SVB Monetary additionally made a number of requests meant to proceed easy operation of its enterprise throughout its chapter, corresponding to asking for permission to keep up its present financial institution accounts and to proceed paying for providers offered by SVB staff.
Reporting by Dietrich Knauth; Modifying by Alexia Garamfalvi and Chris Reese
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