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
'A step forward': New screening criteria for sperm donors takes effect
Canadians looking to grow their families with the assistance of sperm or egg donations should soon have more options for donors as the federal health agency does away with longstanding restrictions criticized as discriminatory.
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
Ippei Mizuhara, ex-interpreter for baseball star Shohei Ohtani, pleads guilty in sports betting case
The former interpreter for Los Angeles Dodgers star Shohei Ohtani pleaded guilty to bank and tax fraud Wednesday in a sports betting case where prosecutors allege he stole US$16 million from the Japanese baseball player to pay off debts.
Steve Albini, legendary producer for Nirvana, the Pixies and an alternative rock pioneer, dies at 61
Steve Albini, an alternative rock pioneer and legendary producer who shaped the musical landscape through his work with Nirvana, the Pixies, PJ Harvey and more, has died. He was 61.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his head more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.
Watch fighter jet pilots pummel fake enemy ship off coast of Philippines
The United States and Philippines held annual joint-training drills just off the Southeast Asian nation’s western coast on Wednesday. Military forces sunk a 'mock' enemy warship – the BRP Lake Caliraya, which was a decommissioned tanker made in China.
'Summer of discontent': Federal unions vow to fight new 3-day a week office mandate
Federal unions are launching legal challenges and encouraging public sector workers to file "tens of thousands" of grievances over the new mandate requiring federal workers to return to the office at least three days a week in the fall.