LevFin Insights has filed a legal challenge to SVB Financial’s motion to seal certain documents pertaining to how it ran its business, reports Teri Buhl.
Buhl of LevFin Insights writes, “The motion to seal documents in the case was first filed by the debtor’s counsel Sullivan & Cromwell earlier this month in SDNY bankruptcy court. The challenge motion from LFI, which was filed by counsel to LFI’s parent company, Hearst Corporation, asserts that press freedom and access to information is the foundation of our bankruptcy courts, and the sealing of documents should not be allowed especially for those deemed non-confidential.
“Access to information is also critical in helping investors in over $3 billion of SVBF bonds make trading decisions. Creditors are currently counting on the FDIC returning just over $2 billion of cash the agency seized after the parent company’s bank was put into receivership last month.
“LFI previously reported SVB Financial Group counsel, in a document filed in SDNY bankruptcy court on March 21, called out the FDIC for allegedly improperly blocking its access to certain funds.”
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