(Greater Sudbury) Laurentian University, in northern Ontario, says it has reached a key milestone in its efforts to no longer be placed under court protection from its creditors.
Posted at 6:14 p.m.
The president of the board of governors of the bilingual university of Sudbury affirms that the creditors accepted the plan of the establishment which would allow him to restructure financially.
In February 2021, Laurentian University declared itself insolvent and placed itself safe from its creditors.
The next step is for the establishment to ask the court, on October 5, for permission to implement this restructuring plan, once certain conditions have been met.
The university says that with the plan implemented, likely later this fall, it can successfully emerge from restructuring and become financially viable.
In a report published last April on the situation of Laurentian University, the Office of the Auditor General of Ontario concluded that the establishment could have avoided putting itself under court protection against its creditors if its leaders had been more transparent with the government about financial hardship.
Auditor General Bonnie Lysyk blamed the university’s deteriorating financial situation from 2010 to 2020 mainly on “continued ill-considered capital spending”.