The bankrupt parent company of Silicon Valley Bank plans to turn over its remaining venture capital business to a new, creditor-backed company while it continues to fight U.S. regulators' seizure of nearly $2 billion in cash, according to court documents filed on Tuesday, Reuters reported. SVB Financial Group reached a restructuring agreement with key creditors and has the support of a coalition of banks and investment funds that collectively hold more than $2.3 billion in SVB Financial debt and preferred stock investments, the documents filed in Manhattan bankruptcy court showed. The company filed for bankruptcy in March after Silicon Valley Bank collapsed, becoming the third-largest bank failure in U.S. history. SVB Financial has used its bankruptcy to sell assets, spinning off its investment banking unit in June, but the restructuring agreement ends its effort to find an outside buyer for the venture capital business. "We believe that retaining SVB Capital under a reorganized company is the best path forward to maximize its value in the current environment," SVB Financial Chief Restructuring Officer William Kosturos said in a statement.
