SVB Financial to Appeal Bankruptcy Court’s FDIC Claim Ruling

SVB Financial Group is challenging a bankruptcy judge’s conclusion that the Federal Deposit Insurance Corp. can assert defensive setoff rights over roughly $1.93 billion in Silicon Valley Bank deposits.

SVB’s bankrupt former parent and a committee of the company’s unsecured creditors filed notice Aug. 9 with the US Bankruptcy Court for the Southern District of New York that they will appeal an Aug. 2 decision that sustained an FDIC objection to the company’s Chapter 11 plan.

Although US Bankruptcy Judge Martin Glenn approved SVB Financial’s plan to distribute assets to creditors and preferred equity holders, he rejected the former bank ...