One of the perennial issues involving D&O insurance coverage in the bankruptcy context is the question whether the directors and officers of the corporate debtor can tap the insurance policy to pay their defense expenses in connection with claims filed against them in their capacities as executives of the corporate entity. These issues have arisen once again in the bankruptcy proceedings of the corporate parent of Silicon Valley Bank, SVB Financial Group, where the bank’s directors and officers found themselves compelled to petition the bankruptcy court to lift the stay in bankruptcy in order for the bank’s insurers to pay the individuals’ defense expenses.

While there is nothing novel about the bankruptcy court’s order granting the stay, both the high-profile nature of the proceedings and the critical importance of the issues involved warrant taking a closer look at what unfolded in that case. A copy of the bankruptcy court’s May 22, 2023, order in the case can be found here. An August 23, 2023, memo from the Foley Hoag law firm about the court’s decision can be found here.Continue Reading SVB Bankruptcy Court Lifts Stay to Allow Insurance to Pay Individuals’ Defense Expenses

Andrew Solyntjes

Andrew Lipton

In the current economic turmoil, bankruptcy is a big concern. In the following guest post, Andrew Solyntjes, Markel Bermuda Limited, and Andrew G. Lipton, of the White & Williams law firm, take review some of the key bankruptcy-related D&O insurance issues. A version of this article previously was published as a White & Williams client alert. I would like to thank the authors for allowing me to publish their article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Here is the authors’ article.
Continue Reading Guest Post: Bankruptcy and D&O Insurance: Top Tips and Reminders