SVB Financial in Bankruptcy After Bank Unit Failure: Explained

SVB Financial Group, the parent of Silicon Valley Bank, has filed for Chapter 11, highlighting the unique bankruptcy processes for bank holding companies.

Silicon Valley Bank is not part of the Chapter 11 case. The now-shuttered bank’s assets have been taken over by the Federal Deposit Insurance Corp. as the agency pays out customers’ deposits.

But the bank’s parent will look to take full advantage of bankruptcy protection benefits—such as a pause on litigation and debt collection—while it figures out how to unload assets to raise money.

According to filings, the company has about $3.37 billion of total funded debt, ...