23-10367-mg Doc 868-1 Filed 02/23/24 Entered 02/23/24 14:16:47
Supplement
Notes and Supporting Documentation Pg 4 of 7
On December 15, 2023, the Bankruptcy Court entered an order authorizing the Debtor to assume and assign
an unexpired lease [D.I. 764] to FCB. The lease assignment was effective as of January 1, 2024. As a result, the Debtor charged off the remaining lease ROU asset and lease liability, $9.8 million and $11.1 million, respectively,
leading to the recognition of a net gain of $1.3 million. Additionally, all fixed assets associated with the location of the lease, totaling $0.7 million, were charged off. The charges recorded for these items, totaling a net gain of
$0.6 million, are reflected in Reorganization Items, net, in the Supplemental Statement of Operations attached to the MOR.
Note 7: Investment
in Subsidiaries
The primary subsidiary business operations of the Debtor during the reporting period are:
SVB Capital Management, LLC
SVB Capital ManCo is the
venture capital and credit investment arm of the Debtor, which focuses primarily on funds management. SVB Capital ManCo manages over $9.5 billion of funds on behalf of third party limited partner investors and, on a more limited basis, the
Debtor. The SVB Capital family of funds is comprised of pooled investment vehicles such as direct venture funds that invest in companies and funds of funds that invest in other venture capital funds, as well as debt funds that provide lending and
other financing solutions. SVB Capital generates income for the Debtor primarily through investment returns (including carried interest) and management fees.
SVB Securities Holdings LLC
SVB Securities Holdings LLC
consists of two businesses, MoffettNathanson LLC, a sell-side research boutique and SVB Transformation Holdings LLC, an asset management company. The Debtor is currently evaluating its position with regard to these entities.
Note 8: Taxes
Taxes receivables reflect a
reasonable estimate of current tax refunds due to the Debtor and continue to be evaluated for any required allocations or adjustments.
Note 9:
Liabilities Subject to Compromise (Prepetition)
Due to the filing of the Chapter 11 Case on March 17, 2023, the payment of prepetition
indebtedness is generally subject to compromise pursuant to a plan of reorganization. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. The Debtor has
been paying and intends to pay undisputed postpetition liabilities in the ordinary course of business. In addition, the Debtor has rejected certain prepetition executory contracts and unexpired leases with respect to their operations with the
approval of the Bankruptcy Court (See Note 6).
Prepetition liabilities that are subject to compromise are required to be reported at the amounts expected
to be allowed, even if they may be settled for lesser amounts. The amounts currently classified as Liabilities Subject To Compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to
disputed claims, determinations of secured status of certain claims, the values of any collateral securing such claims, or other events. The value of the claims that will ultimately be allowed by the Bankruptcy Court cannot be reasonably estimated
until the evaluation, investigation and reconciliation of the filed claims has been completed. Any resulting changes in classification will be reflected in subsequent financial statements.
Note 10: Subsequent Events
On February 7,
2024, the Debtor filed the Disclosure Statement for the Debtors Plan of Reorganization under Chapter 11 of the Bankruptcy Code [D.I. 845].
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