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
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
B.C. judge orders shared dog custody for exes who both 'clearly love Stella'
In a first-of-its-kind ruling, a B.C. judge has awarded a former couple joint custody of their dog.
Saskatoon police to search landfill for remains of woman missing since 2020
Saskatoon police say they will begin searching the city’s landfill for the remains of Mackenzie Lee Trottier, who has been missing for more than three years.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.