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
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.