Province bailing out Laurentian University with long-term loan
The Ontario government is providing Laurentian University with a long-term loan as the school works to emerge from insolvency.
Previously, Laurentian had to get what is known as a DIP loan from private institutions at a higher rate of interest.
The province is also spending more than $53 million to buy LU assets, but will allow the university to access them while using all the money from the sale to pay creditors.
And in the latest update on its restructuring process, the university said the process should be largely complete by the end of June. LU is heading to court May 30 seeking an extension of its deadline to complete restructuring to Sept. 30.
"As discussed above, significant progress on the claims process has been made," the court documents said.
"This includes resolution of over 95 per cent of the claims and the removal of $78 million of asserted claims from the claims process."
Laurentian declared insolvency under the Companies Creditors' Arrangement Act (CCAA) in February 2021, making massive cuts to programs and faculty. The school has faced a firestorm of criticism since then that culminated in Auditor General Bonnie Lysyk declaring last month that LU chose to go the CCAA route when other options were available.
It has become an election issue, and has resulted in the University of Sudbury lobbying to take all French-language programs from LU. The Northern Ontario School of Medicine has already been taken away from Laurentian and made independent.
In addition to buying $53 million in assets, the province is providing $35 million in operating money, COVID-19 funding of up to $6 million, and up to $22 million in funds to compensate for a drop in enrolment.
The money is being provided through the Ministry of Colleges and Universities (MCU).
"LU’s commitment to a process for the development of a new strategic plan was a term of the financial support package that MCU communicated to LU in December 2021, and will be a priority as LU looks to emerge from the CCAA proceeding," the court documents said.
Read the full document here.
CTVNews.ca Top Stories
'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
'Sophisticated' cyberattacks detected on B.C. government networks, premier says
There has been a "sophisticated" cybersecurity breach detected on B.C. government networks, Premier David Eby confirmed Wednesday evening.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Biden says he will stop sending bombs and artillery shells to Israel if they launch major invasion of Rafah
U.S. President Joe Biden said for the first time Wednesday he would halt shipments of American weapons to Israel, which he acknowledged have been used to kill civilians in Gaza, if Prime Minister Benjamin Netanyahu orders a major invasion of the city of Rafah.
Rookie goalie Arturs Silovs to start for Canucks in Game 1 vs. Oilers
Rookie goalie Arturs Silovs will start in net for the Canucks as Vancouver kicks off a second-round series against the Edmonton Oilers Wednesday night.
Nijjar murder suspect says he had Canadian study permit in immigration firm's video
One of the Indian nationals accused of murdering British Columbia Sikh activist Hardeep Singh Nijjar says in a social media video that he received a Canadian study permit with the help of an Indian immigration consultancy.
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.
Quebec premier defends new museum on Quebecois nation after Indigenous criticism
Quebec Premier Francois Legault is defending his comments about a new history museum after he was accused by a prominent First Nations group of trying to erase their history.
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 brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.