SVB Financial gets court approval to sell investment bank
2023.07.05 18:19
© Reuters. FILE PHOTO: Customers wait outside as an employee enters the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. REUTERS/Kori Suzuki/File Photo
(Reuters) – A U.S. bankruptcy judge on Wednesday allowed SVB Financial Group, owner of bankrupt Silicon Valley Bank, to sell its investment banking business to the division’s founder.
Buyers include a group led by the unit’s founder and former CEO, Jeff Leerink, and is backed by funds managed by the Baupost Group.
The deal includes an equity financing of up to $100 million from Baupost along with $30 million financing commitment from the Leerink’s team, according to a court filing.
SVB Financial owned Silicon Valley Bank before it was seized by the U.S. Federal Deposit Insurance Corporation in March. It is attempting to sell its remaining assets in bankruptcy.
U.S. Bankruptcy Judge Martin Glenn in Manhattan last month said he would allow SVB Financial to sell the division, once the company ensured it was not releasing any liabilities related to the collapse of the Silicon Valley Bank.
Glenn signed an order on Wednesday after company officials added some restrictions to the legal releases.
