Silicon Valley Bank’s former parent has reportedly drummed up little interest in its investment business.
“At this time, there is one bid that is currently deemed to be a qualified bid under the bid procedures,” Christian Jensen, an attorney representing SVB Financial in its sale of SVB Securities, said at a Wednesday (May 31) bankruptcy court hearing, per Bloomberg Law.
Jensen did not identify the bidders or offer details about the bid, according to the report. A hearing is scheduled for June 5 on the sale, although it could be pushed back to give bidders more time to examine relevant documents.
SVB Financial Group — the former parent company of Silicon Valley Bank — filed for bankruptcy in March, one week after the bank was taken over by regulators. The Chapter 11 filing did not include SVB Securities and SVB Capital’s funds and general partner entities, the company noted at the time.
Related: Regulators Blame Signature for Own Failure and Themselves for SVB’s
“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” SVB Financial Group Chief Restructuring Officer William Kosturos said in a March 17 news release. “SVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams.”
The release also noted that there was “significant interest” from potential buyers for SVB Capital and SVB Securities.
Meanwhile, the impact of Silicon Valley Bank’s collapse continues to be felt. Wednesday brought reports that the Securities and Exchange Commission (SEC) is looking into withdrawals made from the bank before it folded.
