Laurentian and the Companies’ Creditors Arrangement Act (CCAA)
On February 1st, Laurentian University commenced a court proceeding for a formal restructuring to be undertaken pursuant to the Companies’ Creditors Arrangement Act (CCAA). The court proceeding will provide a court-supervised platform for the University to financially and operationally restructure, and become sustainable long-term. The target date for completion of the key components of the restructuring plan is April 30, 2021.
As expected there has been much discussion in the community, in the media and on social media channels and we want to ensure that all stakeholders have access to the facts regarding these proceedings and Laurentian’s future.
- Laurentian University’s financial challenges have existed for years. The decision to take steps to commence a formal insolvency proceeding is to ensure that we can resolve the situation and set Laurentian on a path for future success and sustainability.
- $25 million in funding has been obtained and approved by the Court to cover operations, including staff and faculty salaries, during the CCAA proceedings.
- The restructuring of programs will help ensure that resources are better allocated to programs that Laurentian students want to take. This process has never been undertaken before and is long overdue.
- The restructuring of programs will be determined in consultation with a committee that is comprised of students, and faculty elected by the Senate. This allows for these important perspectives to be heard.
- The Court has confirmed, as requested by Laurentian, that students are protected and amounts continue to be paid to students and student associations. Existing employees, including graduate students, are being paid from the $25 million in financing obtained as part of the CCAA proceedings.
- Goods and services requested by Laurentian (as approved in accordance with Laurentian current finance policies) for the period from and after February 1 will be paid in full.
- Confidential mediation is underway with critical stakeholders, including the Senate Committee, the federated universities (including the University of Sudbury, Thorneloe University and Huntington University), the Laurentian University Faculty Association (LUFA), and others.
- Discussions are taking place with research-granting agencies to determine how best to address their concerns and ensure that critical research work can continue.