Conflicting views on Laurentian University's debt plan
Laurentian University's creditors have a big decision to make as the school looks to emerge from insolvency and repay some of its debt, and now, more affected groups are weighing in with recommendations.
While a group representing terminated faculty calls for votes against the proposed plan of arrangement, two major groups representing current faculty and staff are recommending that creditors vote in favour of it.
The Laurentian University Faculty Association (LUFA), staff union (LUSU) and school's board of governors made the recommendations to their members in a news release Aug. 16.
"Parties have been engaged in negotiating the plan of arrangement for several months. Following further negotiations on issues important to its members, including a commitment to union consultation on governance reform and a commitment to fast-track the evaluation process in connection with three new faculty positions with a view to adding up to three tenure track appointments in 2023, LUFA has joined LUSU in confirming that it supports the (Companies' Creditors Arrangement Act) Plan," the school said in a news release.
"Implementation of the plan will secure the future of the university, continuing employment for approximately 600 full-time employees and several hundred part-time employees, the continuation of the pension plan, and no disruption for students."
The Terminated Faculty Committee said in a letter provided to CTV News, the concern that voting against the proposal would lead to the school's closure is false.
"In past CCAA cases, a vote against the plan simply sends all the parties back to the negotiating table to come up with a better plan. In some cases, CCAA insolvency plans have gone through as many as four revisions," the committee said.
Louis Durand, the LUFA vice president is quoted as saying the plan represents the best path forward for his group's members.
"It provides additional faculty input in governance, protects our members’ hard-earned pension plans, and secures the future of Laurentian University in Sudbury," Durand said.
The Terminated Faculty Committee disagrees.
"The plan would fundamentally change what it means to be a faculty member, it would strip what little remains of collegial governance and set back working conditions by generations. The faculty will no (longer) lead in academic matters through the Senate, and the faculty’s professional expertise will no longer be respected," it said.
"Laurentian’s proposed plan allows the board of governors to implement the NOUS report as they see fit, which will result in a 'top-down,' non-transparent governance model dictated by the board of governors. It will not lead to a university in which decisions are made 'through a democratically elected, transparent, accountable, and representative governance bodies.'"
Creditors will vote on the proposed plan of arrangement on Sept. 14.
Background
Laurentian is the first publicly-funded Canadian university to file for CCAA protection in January 2021.
As part of the plan of arrangement, the province will buy $53.5 million in real estate from LU, money that will be used to pay creditors, a small portion of what is owed.
A smaller group dubbed 'priority lenders' will be repaid in full, while the majority of groups still owed money – dubbed 'affected creditors' -- will be repaid at a rate of between 14.1 cents and 24.2 cents on the dollar.
The province is also lending LU about $35 million to pay off private-sector lenders that advanced the school operating funds while it was in the insolvency process.
CTVNews.ca Top Stories
Pedestrian, baby injured after stroller struck and dragged by vehicle in Squamish, B.C.
Police say a baby and a pedestrian suffered non-life-threatening injuries after a vehicle struck a baby stroller and dragged it for two blocks before stopping in Squamish, B.C.
Senate expenses climbed to $7.2 million in 2023, up nearly 30%
Senators in Canada claimed $7.2 million in expenses in 2023, a nearly 30 per cent increase over the previous year.
Demonstrators kicked out of Ontario legislature for disruption after failed keffiyeh vote
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
RCMP uncovers alleged plot by 2 Montreal men to illegally sell drones, equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
Government agrees to US$138.7M settlement over FBI's botching of Larry Nassar assault allegations
The U.S. Justice Department announced a US$138.7 million settlement Tuesday with more than 100 people who accused the FBI of grossly mishandling allegations of sexual assault against Larry Nassar in 2015 and 2016, a critical time gap that allowed the sports doctor to continue to prey on victims before his arrest.
BREAKING Canucks goalie Thatcher Demko won't play in Game 2
The Vancouver Canucks will be without all-star goalie Thatcher Demko when they face the Nashville Predators in Game 2 of their first-round playoff series.
Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.