Laurentian emerges from insolvency ahead of Nov. 30 deadline
Laurentian University has formally exited the insolvency process, the school announced Monday, ending almost two years of turmoil at the institution.
LU sent shockwaves across the community Feb. 21, 2021, when it announced it was insolvent and was entering protection from creditors under the Companies’ Creditors Arrangement Act (CCAA).
It was the first time a public institution declared a form of bankruptcy under the CCAA in Canada. More than 60 programs and 150 jobs were lost in the process.
“While there is much healing and hard work yet to be done, today we emerge stronger with safeguards in place to ensure a sustainable, more transparent and inclusive future,” Jeff Bangs, chair of the board of governors, said in a news release Monday.
“Reforming our governance, improving operations and heeding the recommendations of the auditor general will keep us on track but, most importantly, we must be committed to respecting all of the university’s stakeholders as key decisions about the future are made.”
A review by Ontario Auditor General Bonnie Lysyk concluded the bankruptcy was largely caused by poorly planned capital spending between 2009-2018, compounded by the loss of international students because of a dispute with Saudi Arabia and the COVID-19 pandemic.
Dr. Robert Haché was president when the CCAA declaration took place, but he has since resigned. While he insisted that the choice was close the school or declare insolvency, Lysyk’s audit concluded that Haché made the conscious decision to declare insolvency.
For example, he paid off a line of credit, Lysyk said, making it appear LU had no money to continue operating. And Haché asked the province last-minute for a $100 million bailout. When the province didn’t immediately agree, he declared under the CCAA.
Tammy Eger, LU’s interim president, said Monday they are committed to rebuilding pride and confidence in the university.
“We’ll do this through our actions in the months and years ahead as we form our strategic plan and continue organizational transformation,” Eger is quoted as saying in the release,
“Students and parents can feel confident in their decision to choose Laurentian to advance their education ... The future is bright for Laurentian, we have work ahead to transform our institution, but the path forward is clear. We are inspired to realize the vast potential within our community.”
Laurentian University has more than 8,000 students and is one of two bilingual universities in Ontario.
CTVNews.ca Top Stories
BREAKING Louis Gossett Jr., 1st Black man to win supporting actor Oscar, dies at 87
Louis Gossett Jr., the first Black man to win a supporting actor Oscar and an Emmy winner for his role in the seminal TV miniseries 'Roots,' has died. He was 87.
Weather alerts issued for 7 provinces, 1 territory
Warnings of up to 60 millimetres of rain and other alerts have been issued for seven Canadian provinces and one territory ahead of the Easter weekend.
He didn't trust police but sought their help anyway. Two days later, he was dead
Jameek Lowery was among more than 330 Black people who died after police stopped them with tactics that aren’t supposed to be deadly, like physical restraint and use of stun guns, The Associated Press found.
Luxury cruise line selling world cruise suite for US$1.7 million
Luxury operator Regent Seven Seas Cruises is raising their price tag to eye-watering levels, with a suite on an upcoming 140-day world voyage costing US$1.7 million.
Why Kim Kardashian is being sued for 'knockoff' furniture
The estate of minimalist contemporary artist Donald Judd filed a lawsuit against Kardashian this week, claiming the fashion and beauty mogul promoted 'cheap knockoffs' of his furniture designs.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
A Filipino villager is nailed to a cross for the 35th time on Good Friday to pray for world peace
A Filipino villager has been nailed to a wooden cross for the 35th time to reenact Jesus Christ’s suffering in a brutal Good Friday tradition he said he would devote to pray for peace in Ukraine, Gaza and the disputed South China Sea.
Ontario homeowner on the hook for $27,000 when contractor severed power line
An Ontario man who built a garage on his property has been locked in a battle with his electricity provider for a year and half over a severed power line.
King Charles will attend Easter Sunday service at Windsor
Buckingham Palace officials say King Charles III and Queen Camilla will attend an Easter service at the chapel at Windsor Castle on Sunday.