Story updated Feb. 1 at 3:45 p.m.: Laurentian University has now issued a statement regarding filing for court protection due to its financial woes.
The university has declined Sudbury.com’s request for an interview on the subject with Laurentian president Robert Haché.
Read Laurentian’s full statement below:
“Laurentian University of Sudbury (Laurentian) today commenced a court proceeding under the Companies’ Creditors Arrangement Act (CCAA).
“Laurentian’s Board of Governors and Administration determined that commencing these proceedings is the best path forward that will allow for the opportunity to financially and operationally restructure the University.
“The University has taken this step with a view to emerging as a fully restructured and financially viable institution.
“The Initial Order requested by the University and granted by the Court provides for the appointment of Ernst & Young Inc. as the court-appointed Monitor in these proceedings.
“The primary goal of the CCAA filing and restructuring is to ensure that current and future students will continue to have access to a high quality post-secondary education at Laurentian for years to come. Current students will not see a change in their day-to-day education and Laurentian will continue actively recruiting new students.
“Laurentian has kept the Ministry of Colleges and Universities (MCU) fully apprised throughout the process leading to this step being taken, and will continue to work with MCU during the CCAA proceeding. “
Original story
Laurentian University has filed for court protection under the Companies' Creditors Arrangement Act (CCAA) to address the significant financial challenges they indicate they are facing, according to the province.
This information was made public Monday in a statement from Ross Romano, Minister of Colleges and Universities.
In response, the government has appointed Dr. Alan Harrison as a special advisor to advise Romano on options to support Laurentian's path to return to financial sustainability, and ultimately drive Laurentian's long-term competitiveness and success.
"It is deeply concerning that Laurentian University has found itself in a situation where such drastic and immediate action is needed to ensure its long-term sustainability,” Romano said in the statement.
Romano’s statement goes on to read that Laurentian University students remain the government's priority, and it is focused on ensuring they can continue their studies without interruption.
“As a Minister from Northern Ontario, I will continue to be a fierce advocate for Northern communities to ensure that we have access to high-quality and sustainable postsecondary education in the North,” said Romano, who represents the riding of Sault Ste. Marie.
“There is no doubt that this situation is unprecedented. The government will be exploring its options, which could include introducing legislation to ensure the province has greater oversight of university finances and to better protect the interest of students and Ontario taxpayers.
“The government wants to ensure this issue does not repeat itself in other institutions in the post-secondary educational sector."
Harrison is the former provost and vice-principal (academic) at Queen’s University, and is now a consultant in the post-secondary sector.
In December, Laurentian University said it was predicting an overall $10.6-million deficit for 2020-21. The university’s president, Robert Haché, stressed it was time to take a hard look at what the institution offers and why.
