The Queen was just like the other creditors, and, yes, creditors and people get screwed in bankruptcy/CCAA proceedings out of money they've loaned the debtor company. Under the best cases, where the company is able to restructure debt and operations, some creditors (especially unsecured creditors) still get screwed out of money, although it is less than if the company goes out of business. And, even in those cases where the business gets restructured and lives on, it is typical for the common shareholders to get screwed anyway in favor of new equity issued to those who recapitalize the company. It is why the ignored warnings from FINRA and the SEC about investing in bankrupt companies were written.
But, yes, the judge removed the liens against the property, but they were not repaid, at least no more than the $5.2M that was collected up. That's what PWC meant by the "remaining claims" in the update they posted a few weeks ago, this company still has a huge debt attached to it that won't ever be paid (some of it has likely been written off by now as bad debt).
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