Author: Darren R. Bieganek KC

Insolvency proceedings can significantly alter the effectiveness and priority of loan security through various mechanisms including statutory stays, Court ordered priming charges, and the reordering of creditor claims. This paper explores what happens to lender security once formal insolvency proceedings begin. It will illustrate how secured creditor priority can be altered by the restructuring processes, regulatory impacts, and judicial discretion.

These materials are part of a collection presented at LESA’s Commercial Lending program in Edmonton on June 18, 2026.