- Startups with loans from Silicon Valley Bank are required to keep all or a portion of their cash with the lender, breaching the covenants could lead to default.
- SVB has asked clients that pulled money during last week’s bank run to get in touch to work out a solution.
- The bank could be recapitalized as a standalone entity, bought by another financial institution or non-bank entity or wound down.
- Firms including Apollo Global Management, Ares Management Corp., Blackstone, Carlyle Group, and KKR are among those looking to buy pieces of SVB.
- Companies that banked with SVB are in limbo as they wait to see how the bank transforms in the wake of the regulatory takeover.
SVB Clients at Risk of Default May Have No Choice But to Return
Silicon Valley Bank is asking depositors to come back. Startups with loans from the bank are required to keep cash with the lender or be in breach of their covenants, leading to default.