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
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
King Charles' cancer treatment progressing well, says Buckingham Palace
King Charles III’s doctors are 'sufficiently pleased' with his cancer treatment and he is expected to return to public-facing duties, Buckingham Palace announced on Friday.
AFN chief says Air Canada offered a 15% discount after her headdress was mishandled
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
DEVELOPING Bird flu outbreaks: WHO weighs in on public health risk
The current overall public health risk posed by the H5N1 bird flu virus is low, the World Health Organization said on Friday, but urged countries to stay alert for cases of animal-to-human transmission.
76ers All-Star centre Joel Embiid says he has Bell's palsy
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
Island near Mull of Kintyre for sale for US$3.1 million
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.
Regina police officer injured after being accidentally shot by fellow officer's gun
An investigation is underway after a Regina police officer was accidentally shot by a fellow officer’s gun during the search of a house early Friday morning.
Taylor Swift dons Montreal designer's dress in 'Fortnight' video
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.