In 2015, the Court of Chancery ruled upon the then novel issue under Delaware law as to what priority level advancement claims should be afforded in a receivership action. Then Vice Chancellor Parsons held that claims for advancement are not entitled to administrative priority, and instead are considered to be pre-petition, non-priority unsecured claims. For a link to a summary of the Court of Chancery decision, click here. The Court of Chancery’s opinion can be found here: Andrikopolous v. Silicon Valley Innovation Company, LLC, C.A. No. 9899-VCP (Del. Ch. July 30, 2015).
On June 8, 2016, the Delaware Supreme Court, en banc, rendered an order affirming the Court of Chancery’s holding based upon the well-reasoned opinion issued by that Court.