If it was necessary to provide urgently needed cash (or liquidity) to enable the business of an insolvent corporate borrower to survive, how could a financier who was willing to provide this "new money" be protected and given priority over other existing creditors?

The financier can require security to be furnished over the assets and properties of the insolvent corporate borrower for the new monies lent. If the assets and properties are unencumbered, the financier will have priority over the existing creditors in relation to the security provided. If the assets and properties are already encumbered then the new financier will rank in priority to the existing unsecured creditors but will rank after the existing secured creditors in relation to the security provided. However, it is not uncommon for a financier to negotiate with the existing secured creditors to rank ahead of them or at least pari passu with them in relation to the new monies.

The financier can also grant the fresh loan to the insolvent corporate borrower on condition that the existing creditors subordinate their debts to the new loan. This, however, will require the consent of the creditors involved.