Silvergate Capital Files for Bankruptcy

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Silvergate Capital Corporation, the parent company of Silvergate Bank, has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware.

According to court documents filed on Sept. 17, the company has estimated assets between $100 million and $500 million, and liabilities ranging from $10 million to $50 million.

The bankruptcy petition also includes Silvergate’s two affiliates, Silvergate Liquidation Corporation and Spring Valley Lots LLC.

Silvergate’s proposed reorganization plan, which was included in its Chapter 11 filing, aims to fully pay off certain debts such as administrative fees, taxes, and high-priority claims like secured loans and professional fees.

However, claims related to common stock and securities lawsuits would be completely eliminated. Debts between Silvergate’s internal entities would be reinstated, and preferred stockholders would receive partial payments based on their shares.