Laurentian seeks to extend restructuring deadline to May 31
Laurentian University is heading to court this week looking for more time to complete its restructuring process under the Companies' Creditors Arrangement Act.
The current deadline is Jan. 31.
Lawyers for the insolvent university will appear in front of Ontario Superior Court Justice Geoffrey B. Morawetz on Thursday morning seeking an extension to May 31.
The motion would also allow LU to hire a third-party consultant "to assist LU with the development of a strategic plan," said the court filing by Ernst & Young, the accounting firm acting as the monitor in the proceedings.
"To date, LU, with the assistance and oversight of the monitor, has commenced and implemented two claims processes, undertook a full real estate review, undertook and completed a comprehensive governance review with respect of each of the board and senate, and undertook a full operational review of the university," the court filing said.
"The stay extension is required to enable the applicant to continue operating in the ordinary course while continuing to implement a restructuring."
Laurentian is also seeking $35 million what's known as a new DIP loan – money an insolvent corporation borrows at a higher rate so it can continue operating as it restructures. The $35 million would be used to repay a previous DIP loan, and give the school enough money to continue operating.
While earlier DIP loans come at a high interest rate – 8.5 per cent – loan guarantees from the province means LU has been able to negotiate a much lower interest rate of 1.052 per cent for the new loan.
The university also confirmed the impact of the CCAA filing on enrolment. It expected a 30 per cent dip, and the final numbers reflect a 33 per cent drop. That works out to 1,024 new students in fall 2021, compared to 1,531 in fall 2020.
"Despite the reduction in first-year student enrolment, overall enrolment at LU exceeded the projections by approximately 400 students," the court filing said.
"Approximately 8,000 individual students enrolled at LU for the fall 2021 semester. Of the approximately 8,000 individual students enrolled in fall 2021, approximately 2,100 were enrolled in online programs while approximately 5,900 were enrolled in programs primarily delivered in-person at the Sudbury campus."
And the amount of tuition LU will lose as a result of the enrolment drop will be greatly reduced because it no longer transfers tuition money to federated universities.
CTVNews.ca Top Stories
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
'State or state-sponsored actor' believed to be behind B.C. government hacks
The head of British Columbia’s civil service has revealed that a “state or state-sponsored actor” is behind multiple cyber-security incidents against provincial government networks.
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
U.S. says Israel's use of U.S. arms likely violated international law, but evidence is incomplete
The Biden administration said Israel's use of U.S.-provided weapons in Gaza likely violated international humanitarian law but wartime conditions prevented U.S. officials from determining that for certain in specific airstrikes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Mother assaulted by stranger while breastfeeding baby in her car: Vancouver police
A person was arrested in East Vancouver Thursday after allegedly entering a car while a mother was breastfeeding her four-month-old boy.
'We have laws': Premier Smith says police action justified in Calgary
The actions, including the decision to use non-lethal force, to disperse pro-Palestinian protesters from the University of Calgary campus were justified, Alberta Premier Danielle Smith said Friday.