# Priority of secured lenders
**URL:** https://www.mineralrightsforum.com/t/priority-of-secured-lenders/59965
**Category:** Law & Legal
**Created:** [December 27, 2020, 2:20pm UTC](https://www.mineralrightsforum.com/t/priority-of-secured-lenders/59965 "2020-12-27T14:20:47Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@Jogany](https://www.mineralrightsforum.com/u/Jogany)
#### Post date: [December 27, 2020, 2:20pm UTC](https://www.mineralrightsforum.com/t/priority-of-secured-lenders/59965/1 "2020-12-27T14:20:47Z")
Priority question on secured lenders in a Chapter 11 Bankruptcy. Deal #1 on **Jan/1**. Financing of $20MM receivable based on oil sold by Seller X to Buyer Y. This deal was financed by secured **Lender Z**. Deal #2 on **Jan/10** Financing of $20MM receivable based on oil sold by Seller X to Buyer Y. This deal was financed by secured **Lender W**. Buyer X files Chapter 11 on **Jan/15**. There is only $30MM available to pay out the two lenders. Will the bankruptcy judge split this $30MM: $20MM to Lender Z and $10MM to Lender W? Or $15MM to Lender Z and $15MM to Lender W?
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### Author:  [@tracy\_lenz](https://www.mineralrightsforum.com/u/tracy_lenz)
#### Post date: [December 30, 2020, 9:25am UTC](https://www.mineralrightsforum.com/t/priority-of-secured-lenders/59965/2 "2020-12-30T09:25:12Z")
Welcome to the forum!
Hard to say with just those few details (since, maybe I’m wrong, but the dates don’t seem realistic, and dates would matter in conjuring a guess. Both banks would have known about the impending chapter 11 that close to filing), but my guess (aka: pure speculation for the fun of it) is the later secured financing would somehow, with the structure and language and specifics, have priority over the earlier secured financing, or else it wouldn’t have happened. Not many banks are willing to throw money in a sinking ship without some sort of guarantee. But if they really were back-to-back secured lending they _may_ have equal footing on the ownership of the company post-restructuring, but it’d still be pure speculation until the judge ruled.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [March 27, 2021, 2:21pm UTC](https://www.mineralrightsforum.com/t/priority-of-secured-lenders/59965/3 "2021-03-27T14:21:07Z")
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