The Delaware Supreme Court in Andrikopoulos v. Silicon Valley Innovation Co., LLC, No. 490, 2015 (Order) (Del. June 8, 2016), affirmed the Chancery decision which was highlighted here, and which determined that the decision of a receiver to deny advancement rights was not in error, and that claims for advancement were appropriately treated as other unsecured claims without priority. Delaware’s high court supported the discretion of the receiver to use other funds to pursue litigation against the former officers but not to approve payments for advancement. This is a somewhat unusual context of a receivership under Delaware law as compared to bankruptcy.

Frank Reynolds of Thomson Reuters has penned a helpful article that provides highlights of the recent oral argument, shortly after which the court entered a terse order with its ruling. (The Supreme Court Building in Dover is shown at right, in a photo from the court’s website.)