Sudbury’s Laurentian University gets new lifeline from province, board members resign

Sudbury -

Laurentian University in Sudbury is receiving funding from the Ontario government that it says will allow the school to emerge from its restructuring in a stronger position.

The school said Thursday in a news release that’s it’s getting a financial support package, including $35 million, from the Ontario Ministry of Colleges and Universities.

"It will see the university emerge from its restructuring as a stronger, financially viable and vibrant institution serving students, employers and communities in northern Ontario," the release said.

"Laurentian is very pleased with this demonstration of the province’s continued support and commitment to its long-term success."

The $35 million will be used to refinance the existing debt financing made available within the Companies' Creditors Arrangement Act (CCAA) proceeding. And, the province wants to provide a long-term loan upon the school’s emergence from the CCAA proceeding with a plan of arrangement, with terms to be agreed.

Additional funding from the province includes up to $6 million in COVID-19 support for the university, enrolment corridor and performance protection of up to a combined amount of $22 million over a number of years.

It’s to ensure that the effects of restructuring do not impact Laurentian’s operations and provides the university with a period to stabilize all of its operations following emergence from CCAA.

The university said it’s committed to an accelerated process of board renewal.

In connection with the financial support package provided by the province and with two of the five Lieutenant-Governor-In-Council nominee spots vacant, the three existing nominees on the board of governors resigned Wednesday, together with eight other Board members, for a total of eleven outgoing Board members. These resignations are effective immediately.

The province is to appoint five individuals to fill its nominee spots on the Board of Governors in accordance with the Laurentian University of Sudbury Act.