Court approves Laurentian's plan; university could emerge from insolvency within weeks

Ontario’s Superior Court of Justice has approved Laurentian University’s plan of arrangement, clearing the way for Laurentian to emerge from insolvency.

LU declared insolvency in February 2021 under the Canadian Companies' Arrangement Act (CCAA) the first time a Canadian university has done so.

Under the CCAA, the university negotiated with creditors to come up with a plan of arrangement. In September, creditors owed more than $180 million by Laurentian University approved a plan that will allow them to receive between 14.1 per cent and 24.2 per cent of what they are owed.

They will receive between 14.1 per cent and 24.2 per cent of what they are owed, depending on the size of their claim and the amount of money available. The money will be drawn from the sale of real estate to the province – a minimum of $45.5 million and as much as $53.5 million within three years.

“With this most recent approval, Laurentian is now weeks away from being able to successfully emerge from the CCAA process. This significant milestone should give confidence to those applying to Laurentian that they will be able to start and finish their degrees here,” the university said in a news release Wednesday.

With the approval of the plan, the university expects to emerge from the CCAA process by the end of November.

“Laurentian will have successfully emerged from its CCAA restructuring as a financially sustainable university with a solid path for future success,” the release said.

The university also announced its fall open house will be held on Oct. 22. Potential student can register on LU’s website.