SVB Financial Group’s Chapter 11 Plan of Reorganization Becomes Effective

SVB Financial Group’s chapter 11 plan of reorganization has become effective._x000D_
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On Aug. 2, 2024, the United States Bankruptcy Court for the Southern District of New York entered an order confirming the company’s chapter 11 plan of reorganization. The confirmed plan became effective on Nov. 7, 2024. Pursuant to the confirmed plan, on the effective date, the company transferred certain of the company’s assets as well as those of its direct and indirect subsidiaries to a liquidating trust, which was established for the sole purpose of liquidating and distributing such assets. On the effective date, all existing allowed claims and interests in the company were satisfied or canceled in accordance with the terms of the confirmed plan._x000D_
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“On behalf of SVB Financial Group, I would like to thank our creditors for their collaboration and partnership throughout the chapter 11 process, which enabled us to preserve value as we successfully pursued strategic alternatives for the company’s two principal operating units, SVB Capital and SVB Securities,” William Kosturos, who served as chief restructuring officer for SVB Financial Group prior to the effective date, said._x000D_
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Following the effective date, Richard Katz will manage the liquidating trust as CEO and liquidating trust manager under governance of a board of directors. The liquidating trust will continue to pursue claims against the FDIC and other pending legal matters as well as manage and collect on a large investment portfolio principally related to venture-stage companies._x000D_
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Upon and immediately after the effective date, the debtor will be completing a series of restructuring transactions that will result in the company becoming a wholly-owned subsidiary of MNSN (NewCo). In connection with the restructuring transactions, shares of NewCo’s common stock and units of the liquidating trust’s interests will be issued to certain of the company’s creditors in accordance with the terms of the confirmed plan. As a result of the confirmed plan becoming effective, all of the company’s outstanding shares of common stock, Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock and related rights to receive or purchase shares of common stock, were canceled on the effective date._x000D_
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Centerview Partners served as financial advisor, Sullivan & Cromwell served as legal counsel, and Alvarez & Marsal served as restructuring advisor to SVB Financial Group as debtor-in-possession. PJT Partners served as financial advisors and Davis Polk & Wardwell served as legal counsel to the ad hoc group of senior noteholders. White & Case served as legal counsel to the ad hoc cross-holder group. Berkeley Research Group served as financial advisor, Lazard Frères served as investment banker, Akin Gump Strauss Hauer & Feld served as legal counsel and Cole Schotz served as efficiency and conflicts counsel to the official committee of unsecured creditors.