Andrikopoulos Affirmed – Advancement Claims Not Afforded Priority In Receivership

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.