- The Ontario government has given Laurentian University a long-term loan to help it return from insolvency.
- In a recent report on its restructuring efforts, the institution claimed that it expects to be almost finished by June.
- Laurentian declared insolvency in February 2021, resulting in extensive programme and faculty layoffs under the Companies Creditors Arrangement Act (CCAA).
Laurentian University is receiving a long-term loan from the Ontario government as it strives to recover from insolvency.
Laurentian previously had to obtain a DIP loan from private institutions with a higher interest rate.
The province is also paying more than $53 million to purchase LU assets, although the university will have access to them while the proceeds from the sale are used to pay creditors.
In a recent report on its restructuring efforts, the institution stated that it expects to be nearly finished by June. LU will court on May 30 to request an extension of its restructuring deadline until September 30.
The court records stated, “As indicated above, significant progress on the claims procedure has been made.”
“Over 95% of the claims have been resolved, and $78 million in asserted claims have been removed from the claims process.”
Laurentian declared insolvency in February 2021 under the Companies Creditors Arrangement Act (CCAA), resulting in significant program and faculty layoffs. Since then, the school has received criticism, culminating in Auditor General Bonnie Lysyk’s announcement last month that LU chose the CCAA over alternative options.
It has turned into a campaign issue, with the University of Sudbury seeking to remove all French-language programs from LU. Laurentian University has previously separated the Northern Ontario School of Medicine from Laurentian.
In addition to the $53 million in assets, the province provides $35 million in operational funds, up to $6 million in COVID-19 financing, and up to $22 million in enrolment compensation monies.
The funds arrive from the Ministry of Colleges and Universities (MCU).
“As LU attempts to emerge from the CCAA litigation, LU’s commitment to a process for the formulation of a new strategic vision was a term of the financial support package that MCU announced to LU in December 2021 and will be a priority,” the court records added.
Source: CTV News
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