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
DEVELOPING 122 active wildfires burning across Canada, 32 considered 'out of control'
The 2024 wildfire season has begun, and it's shaping up to follow last year's unprecedented destruction in kind, with thousands of square kilometres already consumed.
B.C. parents sentenced to 15 years for death of 6-year-old boy
A British Columbia Supreme Court judge has sentenced the mother and stepfather of a six-year-old boy who died from blunt-force trauma in 2018 to 15 years in prison.
Veteran TSN sportscaster Darren Dutchyshen has died
Veteran TSN broadcaster Darren 'Dutch' Dutchyshen, one of Canada’s best-known sports journalists, has died. He was 57. His family says 'he passed as he was surrounded by his closest loved ones.'
'More aggressive': Tocchet shifts lineups as Canucks get ready to take on Oilers in Vancouver
As the Canucks prepare to take on the Oilers for Game 5, Vancouver head coach Rick Tocchet is making changes to the team's lineup.
Think twice before sharing 'heartbreaking' social media posts, RCMP warn
Mounties in B.C. are urging people to think twice before sharing "heartbreaking posts" on social media.
Police issue Canada-wide warrant for Regina homicide suspect
Police have issued a Canada-wide warrant for a man wanted in a homicide which occurred in Regina on May 12.
Trudeau calls New Brunswick's Conservative government a 'disgrace' on women's rights
Prime Minister Justin Trudeau assailed New Brunswick's premier and other conservative leaders on Thursday, calling out the provincial government's position on abortion, LGBTQ youth and climate change.
Kevin Spacey receives star support as he fights to get his career back
Kevin Spacey is pushing back on the 'rush to judgment' against him and is being backed by some big names as he seeks to reclaim his acting career.
Speaker cuts ties with Sask. Party, alleges he faced threats, harassment from gov't MLAs
The Speaker of the Saskatchewan Legislature Randy Weekes has severed ties with the Sask. Party after accusing some members of harassment and intimidation tactics, including a situation he claimed saw the Government House Leader bring a hunting rifle to the legislative building.