SVB Bankruptcy Plan Approved, But $2 Billion FDIC Fight Lingers

A judge approved SVB Financial Group’s restructuring deal but dealt the company a setback in its fight with federal regulators to recover about $2 billion it had at its Silicon Valley Bank subsidiary when it collapsed last year.

Judge Martin Glenn on Friday backed SVB’s plan to distribute assets to creditors and preferred equity holders, largely resolving its bankruptcy. The group includes funds managed by Citadel Advisors LLC, Hudson Bay Capital, King Street Capital Management LP and other Wall Street heavyweights, according to court documents.

But the ruling leaves unresolved its fight with the Federal Deposit Insurance Corp. over ...