S&C Advises SVB Financial Group Through Successful Plan of Reorganization

SVB Financial Group, the former parent company of Silicon Valley Bank, announced that its plan of reorganization became effective on November 7, less than 20 months after the company filed for Chapter 11. The Chapter 11 filing followed the collapse of Silicon Valley Bank, the third-largest bank failure in U.S. history, which was placed into FDIC receivership on March 10, 2023.

The United States Bankruptcy Court for the Southern District of New York confirmed the company's Chapter 11 plan of reorganization on August 2. During the Chapter 11 case, two of SVB Financial Group's principal operating businesses-SVB Capital and SVB Securities-were sold with court approval. Under the plan, the company transferred certain of its assets, as well of those of its direct and indirect subsidiaries, to a liquidating trust established to liquidate and distribute the assets for the benefit of creditors. The liquidating trust will continue to pursue claims against the FDIC, in its corporate capacity and as the receiver for Silicon Valley Bank, for $1.9 billion in deposit funds held at the bank, as well as other pending legal matters. The company's remaining operating business, equity research firm MoffettNathanson LLC, was reorganized under the newly-formed MNSN Holdings Inc., which will also retain certain tax attributes of the company. The equity of MNSN Holdings Inc. was distributed to qualified creditors pursuant to the plan.

The S&C team advising SVB Financial Group includes Jim Bromley, Robert Sacks, Diane McGimsey, Adam Paris, Jared Fishman, Jameson Lloyd and Christian Jensen.