Feds to change law that allowed Laurentian University to declare insolvency
Sudbury MP Viviane Lapointe said Tuesday evening that the fall economic statement includes plans to change the legislation that allowed Laurentian University to declare insolvency.
LU used the Companies’ Creditors Arrangement Act (CCAA) to declare insolvency in February 2021, leading to layoffs, program cuts and the end of its agreement with federated universities.
It was the first time a public institution used the CCAA to restructure, and the move led to an audit by the province that concluded the university had other options, but chose insolvency.
In a news release Tuesday, Lapointe said the feds “will take steps to amend the Act so that post-secondary institutions can no longer access the bankruptcy act as a means of dealing with financial hardships.”
More than 100 professors and 70 staff lost their jobs and a total of 24 programs were cut.
Lapointe said removing the ability of publicly funded institutions, such as universities and colleges, to make use of bankruptcy and insolvency law is crucial.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
“In my discussions with university officials, faculty, unions, and community members, all have stated there is a need to ensure this never happens again,” Lapointe is quoted as saying in the release.
“Today, we made it clear that we agree, and are taking the necessary steps to preserve the security of students’ education and the employment of university faculty and staff.”
CTVNews.ca Top Stories
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Decoy bear used to catch man who illegally killed a grizzly, B.C. conservation officers say
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
OPP responds to apparent video of officer supporting anti-Trudeau government protestors
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
An emergency slide falls off a Delta Air Lines plane, forcing pilots to return to JFK in New York
An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Loud boom in Hamilton caused by propane tank, police say
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.