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June 9 — Two former Silicon Valley Innovation Co. LLC officers' claims for advancement of legal fees aren't entitled to priority treatment as administrative expenses of a receivership, the Delaware Supreme Court ruled June 8 ( Andrikopoulos v. Silicon Valley Innovation Co., 2016 BL 183677, Del., No. 490, 6/8/16 ).
The state high court affirmed a July 2015 decision by the Delaware Chancery Court resolving the novel issue of whether officers and directors' advancement requests are administrative expenses or unsecured creditor claims (13 CARE 1741, 8/7/15).
In its 2015 ruling, the chancery court concluded that the ex-officers' claims “should be treated on par with the claims of other unsecured creditors and paid pro rata.”
The supreme court heard argument in the case June 8 and issued its brief order that same day agreeing with the lower court's reasoning.
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The court's order is available at http://src.bna.com/fKA.
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