Letters between LU and province show negotiations between two parties in the days leading up to Laurentian’s CCAA filing
The public is finally getting a look at letters exchanged between Laurentian University and the Ministry of Colleges and Universities from January 2021, in the days leading up to when LU declared insolvency and filed for creditor protection under the Companies’ Creditors Arrangement Act .
However, Laurentian agreed earlier this fall that the public would have access to the documents as of its exit from the CCAA process, which finally happened Nov. 28, after 22 months under creditor protection. For example, he said that “obligations for termination and severance pay, which are calculated to be approximately $48 million under the terms of the collective agreement where 100 full-time faculty are terminated, cannot be assumed by Laurentian University given its insolvency and inability to meet existing obligations.”
Haché’s letter also includes a timeline of interactions between Laurentian and the Ministry of Colleges and Universities, and shows there was a meeting between LU officials and Romano about the possibility of a CCAA filing on Aug. 4, 2020. He said “in recognition of the immediate cash flow challenges facing Laurentian University,” the ministry had approved a grant of up to $12 million for the period ending March 31, 2021.
He said that cash-flow forecast was prepared in contemplation of a CCAA filing, meaning LU would have to make no payments in respect of existing indebtedness.
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