Laurentian clears another legal hurdle in creditor protection

Laurentian University cleared another hurdle on Monday as it continues to navigate and emerge from its insolvency troubles.

During a virtual court appearance, the school was granted another extension and will now be protected from creditors until the end of September.

It doesn't solve all of Laurentian's legal woes, but the school's lawyer said in court during her brief, "the school is now entering the 'home stretch'" of the process under the Companies' Creditors Arrangement Act (CCAA).

The court also heard about how Laurentian has reached an agreement with the formerly affiliated University of Sudbury on the pension plan, but nothing with Thorneloe University.

The monitor's lawyer found the pension agreement reasonable and that the extension should provide some comfort to Laurentian's new and current students.

The judge was also given an update on the province's offer to buy $53.5 million worth of Laurentian assets, to help the school with its creditors.

It's still unclear what exactly would be put up for sale and whether that could include the trail network around the school or the historic Bell Mansion.

Enrolment has proven to be a difficult thing for the administration to predict, while the number of international students has more than doubled, direct high school to university registration is down about 46 per cent.

Laurentian's lawyers also revealed the auditor general's report tabled in April -- in which she said the CCAA process was unnecessary and its subsequent media attention -- created a lot of uncertainty and anger among stakeholders.

There's currently only one motion on the calendar on June 16 to deal with the Art Gallery of Sudbury and lawyers said work is already underway to resolve that beforehand.

Lawyers for the school said they are hoping to have a plan ready for creditors in the next 30 days.