Laurentian starts court proceeding for formal restructuring under CCAA
On Feb. 1, Laurentian University in Sudbury started a court proceeding under the Companies’ Creditors Arrangement Act (CCAA). This comes after the university’s board of governors and administration determined that this path would give the institution a chance to financially and operationally restructure “with a view to emerging as a fully restructured and financially viable institution.”
According to the release, there are no changes expected to day-to-day education for current students and the university will continue to recruit new students.
In a message published on its website, Laurentian president Dr. Robert Hache notes that “a number of developments over the past decade have put an increased strain on the operational and financial health of the University.” These include recurring deficits, declining northern Ontario demographics and the costs and revenue impacts associated with the Covid-19 pandemic. Hache adds that Laurentian’s financial health is “amongst the weakest in the province compared to other universities” and that the recent move comes as part of an intention to change the university’s financial situation.
“Despite our best efforts over the last year, Laurentian is insolvent. This is a problem that can and will be addressed if all stakeholders work together to implement a vision for Laurentian that includes more financially sustainable operations.”
Laurentian has been working with the Ministry of Colleges and Universities prior to the CCAA filing and expects to continue cooperating with the ministry throughout the proceedings.
The first phase of the restructuring is expected to take three months, and is anticipated to result in a new framework for the institution.
(This article first appeared in the Canadian Mining Journal)