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Silicon Valley Bank Closure - Practical Insights
Update #2

Dear Clients and Friends,

Further to the update circulated yesterday, the FDIC, US Federal Reserve and US Treasury Department released a joint statement overnight, announcing that SVB account depositors will have access to all of their funds, starting today – Monday, March 13.
Read here >>

The aforementioned statement also applies to Signature Bank which was also closed by its state chartering authority over the weekend.
In addition, the U.K. Government announced that HSBC Holdings has acquired SVB UK, the British branch of the American bank.
Read here >>

Following the key takeaways and practical insights provided yesterday, please be aware of the following points, based on information currently known:
  • SVB credit facilities – as noted yesterday, the FDIC has frozen all lines of credit and, at this time, they are not currently available to be utilized. The FDIC has yet to provide an update regarding the treatment of such credit facilities, and as such, the FDIC's guidelines require that you should continue to make your loan payments (likely not relevant for most borrowers until April 1). Any client who has an existing credit facility with SVB is encouraged to reach out to us for further guidance and analysis of existing obligations and alternative financing options.
     
  • Potential fraud / phishing – as noted in our initial update, please be on high alert for any attempted fraud and/or phishing in connection with your SVB account, particularly with respect to payments and other account activities. This warning also applies to payments made to third parties who had an account with SVB or otherwise have provided updated account information recently. 

As this is an ongoing and fast-moving situation, we will continue to provide updates and insights as they become apparent.
Should you have any further questions, please do not hesitate to reach out:
Adv. Simon Weintraub
partner, High Tech
and Banking

SimonW@ArnonTL.com
Adv. Avi Anouchi
partner, High Tech
and Banking

AviA@ArnonTL.com
Adv. Idan Adar
High Tech
and Banking

IdanAd@ArnonTL.com 
Adv. Joeri Kreisberg
Partner, High Tech

joeri@arnontl.com
Adv. Kobi Ben Chitrit
Partner, High Tech
and M&A

​ kobi@arnontl.com
Adv. Peter Sugarman
Partner, High Tech

peters@arnontl.com
Adv. Yarom Romem
Partner,High Tech

yaromr@ArnonTL.com
Adv. Nimrod Vromen
Partner,High Tech

nimrodv@ArnonTL.co.il
 Adv. Daniel Damboritz
Partner, High Tech
danield@arnontl.com
Adv. Elie Sprung
Partner,High Tech

elie@arnontl.com
Adv. Liron Hacohen
Partner,High Tech
and M&A

lironh@arnontl.com
 Adv. Yulia Lazbin
Partner, High Tech
yulial@arnontl.com
Adv. Gail Etzion
Partner, High Tech

gail.e@arnontl.com
Adv. David Roness
Partner, High Tech

davidr@arnontl.com
 Adv. Adrian Daniels
Partner, High Tech
adrian@arnontl.com
Adv. Ezra Gross
Partner, High Tech

Ezrag@arnontl.com

 
Adv. Oded Levy
Partner,High Tech
and M&A

oded@arnontl.com
Dr. (Adv.) Ophir Nave
Partner, ,High Tech
and M&A

ophir@arnontl.com
Adv. Ben Sandler
  Partner, High Tech
and M&A
Adv. Barry Levenfeld
Partner,High Tech
and M&A

barry@arnontl.com
 Adv. Barak Platt 
Partner, ,High Tech
and M&A

​barakp@arnontl.com
Adv. Ronit Amir-Yaniv  Partner, High Tech
Adv. Roi Keidar
Partner, High Tech

royk@arnontl.com
Adv. Raffi Brown
Partner, High Tech

​raffib@arnontl.com
Adv. David Osborne
Partner,High Tech
and M&A

davido@arnontl.com
Adv. Shira Lahat
Partner, Labor Law

ShiraL@arnontl.com
Adv. Tal Keret
Partner, Labor Law

tal@arnontl.com 
Adv. Yuval Bargil
Partner, Restructuring
and Insolvency

​yuvalb@arnontl.com
Adv. Danit Rimon
Partner, Restructuring
and Insolvency

danit.r@arnontl.com