Business
Update regarding closure of Silicon Valley Bank
Update regarding closure of Silicon Valley Bank.
About this update from Naked Wines Plc
[{"type":"text","content":"\n \n \n 13 March 2023\n \n \n \n \n \n \n Naked Wines plc\n \n \n \n \n \n \n \n \n (\"Naked Wines\" or \"Group\")\n \n \n \n \n \n \n Update regarding closure of Silicon Valley Bank of Santa Clara (\"SVB\")\n \n \n \n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n \n \n ●\n SVB, one of the Group's banking partners, was closed by regulators on Friday March 10th\n \n \n ●\n Group day to day operations unaffected, FY23 trading consistent with guidance provided in January\n \n \n ●\n No loss expected to the Group resulting from SVB failure\n \n \n ●\n Robust Group liquidity with £32m gross cash on hand of which £17m immediately available\n \n \n ●\n Financial plans assumed no further drawdown from SVB credit facility, 50% of which is provided by Bridge Bank who remain supportive\n \n \n ●\n Additional insight on SVB resolution process required to fully determine next steps, search for new financing partner underway\n \n \n \n Details\n \n \n \n \n \n \n \n \n On Friday 10th March it was announced that regulators had closed down SVB, with the US Federal Deposit Insurance Corporation (\"FDIC\") appointed as receiver. The Group holds cash with SVB in a variety of accounts in the USA and UK. SVB is also the administrative agent and issuing lender for the Group's $60m asset-backed credit facility. The Group is offering the following assessment of the impact of the closure based on our current and best interpretation of our mutually agreed contract terms.\n \n \n \n \n \n As of Friday March 10th the Group had gross cash on hand of £32m. While the situation remains fluid, our contractual assessment to date shows us having less than £0.6m of cash which we considered, prior to the US Treasury Announcement referenced below, to be at risk and potentially uninsured due to the closure of SVB. £14m is held in a cash sweep account under which SVB acts as custodian for 3rd party money market funds. The contract terms of this account state that these funds are held by SVB as agent and that in the event of a failure of the bank the Group's ownership interest should be recognised. As a result the Group should be entitled to a return in full of those funds after completing any procedures required by the FDIC. We note the joint statement issued by the Treasury, Federal Reserve and FDIC aims for \"Depositors ...