2023-03-19 02:31:44 ET
Summary
- Parent company of Silicon Valley Bank, SVB Financial Group, filed for Ch.11 bankruptcy in New York on March 17.
- SVB Financial Group is actually not insolvent, and they just needed to use the automatic stay provision under the bankruptcy code to sell their assets in a timely manner.
- Unsecured noteholders could actually get a full recovery under a Ch.11 reorganization plan.
- While preferred shareholders should get a meaningful recovery, it is unlikely common shareholders will get anything.
For further details see:
Bankrupt SVB Financial Doesn't Seem Insolvent, Some Investors Could Get Meaningful Recoveries