Laurentian University asks for stay extension to exit insolvency
Sudbury, Ont., university was set to exit insolvency proceedings on Oct. 5
In new court documents Sudbury's Laurentian University has asked its stay period, under creditor protection, to be extended until Nov. 30, 2022.
On Sept. 14 the northern Ontario university's creditors voted in favour of a plan of arrangement, which sets the terms for Laurentian to repay them and for it to exit its insolvency proceedings.
Laurentian was scheduled to get court approval to exit creditor protection on Oct. 5. If its new request for an extension is approved, the exit will be occur more than a month later than the original date.
"The requested brief extension of the stay period is required to enable LU (Laurentian University) to continue operating in the ordinary course while preparing for the sanction hearing," the university said in its court submission.
According to the plan of arrangement, creditors can expect to get between 14 per cent and 24 per cent of the money they are owed.
Laurentian filed for insolvency in February 2021. Two months later it cut 69 programs and fired nearly 200 staff and faculty members.
Fabrice Colin, president of the Laurentian University Faculty Association, called the vote to approve the plan of arrangement the "beginning of a new chapter" for the university.
"As the long and painful CCAA (Companies' Creditors Arrangement Act) process draws to a close, we can finally begin the work of restoring our university's integrity as well as the programs and jobs cut because of bad management and an irresponsible provincial government," Colin said.