New package includes additional financial support and renewed Board of Governors
Laurentian University today announced a new package of support from the Ontario Ministry of Colleges and Universities (MCU) that will see the university emerge from its restructuring as a stronger, financially viable and vibrant institution serving students, employers and communities in Northern Ontario.
Laurentian is very pleased with this demonstration of the Province’s continued support for Laurentian and commitment to its long-term success. The university is grateful to the Province for its assistance and collaboration throughout this restructuring.
The financial terms of the support include $35 million to refinance the existing DIP (debtor-in-possession) financing made available within the CCAA proceeding. The Province also expressed an intention to replace the DIP Facility with a long-term loan upon Laurentian’s emergence from the CCAA proceeding with a successful Plan of Arrangement, on terms to be agreed.
Other terms include up to $6 million in COVID funding for the university, and enrolment corridor and performance protection of up to a combined amount of $22 million over a number of years. This will ensure that the effects of the restructuring do not unduly impact Laurentian’s operations and provides the university with a period to stabilize all of its operations following emergence from CCAA.
Laurentian has appreciated MCU’s support prior to and throughout its CCAA restructuring, and looks forward to continuing that positive relationship with MCU as DIP Lender.
Renewal of the Board of Governors
Laurentian is committed to an accelerated process of Board renewal. In connection with the financial support package provided by the Province and with two of the five Lieutenant-Governor-In-Council (“LGIC”) nominee spots vacant, the three existing LGIC nominees on Laurentian’s Board of Governors resigned yesterday, together with eight other Board members, for a total of eleven outgoing Board members. These resignations are effective immediately.
The Province is appointing five individuals to fill its LGIC nominee spots on the Board of Governors in accordance with the Laurentian University of Sudbury Act. Once onboarded, Laurentian looks forward to working with these new members of the Board.
Laurentian wishes to acknowledge the commitment demonstrated by its outgoing Board members during this difficult time in its history, and thanks them for their volunteer service in the face of tremendous adversity.
A Sustainable Laurentian
With this announcement, new applicants who may be considering Laurentian can feel even more confident in their choice to study in the North, with a fully restructured university. This package of support from the Province will benefit the entire Laurentian community, as well as the broader region in the North that it serves.
Laurentian remains steadfastly committed to emerging from the CCAA restructuring process, so that it continues to be a university of choice for students in the North, and there is still much work to be done. As part of Laurentian’s ongoing efforts, the university committed to a full operational and governance review, which is nearing completion. In addition, Laurentian will be completing a full strategic review with the benefit of an independent third party, as it emerges on a solid financial footing.
Laurentian is confident the Province’s package of support will contribute significantly to the university’s emergence in 2022 as a fully restructured and financially sustainable university.