Art gallery assets must be protected from LU insolvency, art council says

As first reported by CTV Northern Ontario, the Art Gallery of Sudbury learned recently its assets are in danger because of Laurentian University's insolvency process.

While the AGS has operated the gallery for decades, it is owned by Laurentian University, meaning the Bell Mansion that houses the gallery and the $4.8 million art collection could be used to pay creditors as the university works to emerge from insolvency.

While the gallery wants to separate its assets from the insolvency process, the court-appointed monitor of the process argues the assets are clearly owned by the university and are therefore part of the insolvency.

“If the relief sought by AGS on this motion were granted, it would have the effect of treating the AGS claim differently from claims filed by other parties in the claims process, including other trust or property claims,” says Ernst and Young accounting firm.

The local arts council is not happy.

“Measured outrage would probably be the best way to describe it," said says Andrew Boyd, Sudbury Arts Council president.

"We have been concerned that this may be the worst-case scenario and it certainly seems to be unfolding that way. It is a travesty.”

Boyd said the collection held by the gallery is part of the community's fabric and is not something that should be part of the process.

“For a community of this size to have its collection essentially thrown down like a chip on a casino table during a receivership is not acceptable," he said.

"This would probably be the time for public dialogue and push back on this may be the only way that we can affect the outcome.”

Boyd said he believes it's not too late to turn things around and he’s encouraging the entire art community to contact local politicians to have their voices heard.

The dispute will be heard at a court hearing next month. Read the full court filing here.