Silvergate begins NYSE delisting process as it readies to cut 230 staff
The parent company of the collapsed Silvergate Bank will be delisted from the New York Stock Exchange (NYSE) and 230 staff will be let go, Silvergate Capital has disclosed.
In a May 11 filing to the Securities and Exchange Commission (SEC), Silvergate Capital said 230 staff will be “separated” starting May 12. The NYSE also suspended trading in its stock with delisting to commence “shortly.”
After the staff cut “approximately 80 officers and employees” will be left behind to continue Silvergate Bank’s liquidation process.
More cuts are on the horizon. At least three more headcount cuts are slated for June 30, Aug. 30 and Nov. 30 “or later” the filing states.
Silvergate estimated staff drawdown costs would land around $13.6 million with expenses on severance, retention and bonus pays along with job placement programs.
In a separate May 11 SEC filing, Silvergate said it’s unable to file legally required financial reports for the 2022 fiscal year and the first quarter of 2023 and “does not expect to be able” to file any similar reports in the future.
The firm cited “challenges” due to “continuous developments relating to the regulatory and other inquiries and investigations that are pending,” and liabilities from legal action and the bank’s liquidation process.
Silvergate says it is done filing 10-Ks, 10-Qs and proxy statements, in large part because of "the continuous developments relating to the regulatory and other inquiries and investigations that are pending with respect to the Company and the Bank" https://t.co/1EpkRKAixt pic.twitter.com/i1D6S1daGP
Silvergate determined it’s in the “best interests” of stakeholders to “minimize costs and expenses” to preserve value. Some of the staff to be cut include those that are
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