Spongetech Delivery Systems Inc (fka SPNGQ)

[loanranger]

I asked that you "Assume that the company has no assets" for both the purpose of answering the question and because I believe that to be the case.

I'm sure that the company has some kind of insurance, but I guess it provides coverage to directors and officers and not to the company itself. Is that the same coverage that pops up in class action suits?

"At the risk of sounding cute, if there are no assets, the Trustee will file a declaration to that effect and the court will close the case so priority is meaningless."
I assume that you are referring to the bankruptcy court.

Does anyone know where the SEC falls on the priority list? I suspect that there is someone out there that can explain this prioritization issue.