In a court ruling in New York, the Federal Deposit Insurance Corp. (FDIC) has been ordered to return tax refund checks it took out of the hands of SVB Financial Group, a bankrupt company seeking to compensate bondholders. SVB Financial Group is the corporate parent of failed Silicon Valley Bank. The decision poses concerns the FDIC, which had its sights set on claiming future tax refunds.
On Wednesday, a judge issued a ruling that compels the FDIC to surrender some $10 million worth of tax refund checks made out to SVB Financial Group, Reuters and other sources reported. This marks at least a momentary triumph for the latter in its mission to compensate bondholders.
SVB Financial Group Owes Bondholders
During a court hearing in Manhattan, SVB Financial Group’s representative, James Bromley, reportedly disclosed that the company anticipates receiving some $300 million in tax refunds over the next two years.
These refunds,…
