After 22 months under the CCAA, university finally exited insolvency restructuring on Nov. 28
In February 2021, Laurentian University became the first publicly funded university in Canada to file for protection under the Companies’ Creditors Arrangement Act , a process Ontario’s auditor general said was “designed as a last resort for private companies.”
Legal dispute with Ontario’s auditor general At the beginning of 2022, Laurentian University’s lawyers were engaged in a legal dispute with Ontario Auditor General Bonnie Lysyk’s office, which had been tasked with conducting a value-for-money audit of LU by the Ontario legislature. While Chief Justice Morawetz ruled in Laurentian’s favour in this specific case, the clock was ticking on another process to compel LU to provide the requested documents.
Auditor general releases Laurentian reports With the documents she needed now in her hands thanks to the legislature’s Speaker’s Warrant, Ontario Auditor General Bonnie Lysyk dropped a bombshell on April 13, when she released her preliminary 13-page report on Laurentian. On Nov. 17, Lysyk released her full report on Laurentian University, in which she upheld and expanded on the findings of her preliminary report.
“Although Laurentian’s operations were impacted by several external factors, the main cause of its financial decline from 2010 to 2020 was its poorly planned and costly capital expansion and modernization,” said Lysyk, in the report’s overall conclusion. Dominic Giroux, who was Laurentian’s president from 2009-2017, and is now the president of Sudbury’s hospital, Health Sciences North, declined to comment on the criticisms of his leadership contained in Lysyk’s report.
Exactly what assets the province is purchasing has still not yet been revealed, although the timeline for these real estate purchases was eventually changed from four years to three, meaning creditors will get a faster payout. The plan of arrangement was approved by 87.4 per cent of the number of eligible voters who cast ballots, which means the first test was met.
Sealed documents become public With Laurentian’s CCAA exit, the public finally got to view documents that were sealed from the public record at the beginning of Laurentian’s insolvency. Romano said “at this point in time” the province is “not in a position to provide support on the order of magnitude of $100 million as requested in your presentation.”
The grant would be conditional “upon Laurentian’s agreement to support and collaborate with the Special Advisor’s review as well as Laurentian’s agreement to not file for protection under the Companies’ Creditors Arrangement Act.”“Unless a very different option arises over the next five days, we believe that the commencement of a CCAA proceeding currently represents the best path forward for Laurentian University,” he said.
Both Haché and Berger were terminated on a “without cause” basis, according to the minutes of in-camera Laurentian board of governors meetings. The plan of arrangement does, indeed, say that Haché and Berger will be treated as creditors of the university following their terminations. Sheila Embleton will assume the role of interim president, working alongside Brenda Brouwer, who will serve as interim provost. Both will be starting their new posts on Jan. 1, 2023.
Laurentian’s board of governors has also seen a considerable shake-up since December 2021, when 11 members stepped down as part of a provincial financial package, and five others were appointed. Bangs said LU’s future actions will be closely watched by the province and the auditor general, among others.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Levee, music and swimming welcome in the new yearEsquimalt hosting levee; Old Music for the New Year at Christ Church Cathedral; icy swimming
Read more »
Eby resolves to keep spending in new year, making most of forecast budget windfallPremier David Eby says the New Democrat government’s priorities are the same as those of B.C. residents: affordability, cost of living, public safety, health care and housing.
Read more »
Southern Alberta residents ready to ring in new year and new town of Diamond ValleyThe Town of Diamond Valley is set to become Alberta\u0027s newest community after the two town councils approved a merger earlier this year.
Read more »
Sherdog’s 2022 Walkout Song of the YearTai Tuivasa’s decision to turn to Cyndi Lauper helped turn one February night into an unforgettable experience in Houston.
Read more »
Toronto to ring in the New Year with waterfront fireworks displaysTwo synchronized 15-minute shows will start at midnight and will be viewable from anywhere that has views of Toronto’s inner harbour.
Read more »