Two years ago today, on Feb. 1, 2021, Laurentian University became the first publicly funded university in Canada to file for protection under the Companies’ Creditors Arrangement Act (CCAA).
Laurentian’s journey under the CCAA was to last the rest of 2021, as well as most of 2022, for a total of 22 months in all.
The process, which Ontario Auditor General Bonnie Lysyk said Laurentian never needed to enter in the first place, included mass layoffs and program cancellations, the severing of ties with federated universities operating on campus (resulting in even more layoffs and program cancellations) and a plan of arrangement that will see LU creditors receive only roughly 14 to 24 per cent of what they’re owed over the next three years.
With Laurentian being the first public university in Canada to attempt to restructure its operations using a process designed as a last resort for private companies, the situation has attracted national media attention and resulted in damage to Laurentian’s reputation.
The university exited the CCAA minus both its most recent president, Robert Haché, and provost, Marie-Josée Berger, who departed last year as part of the terms of Laurentian’s plan of arrangement.
Two academics seconded from Southern Ontario universities, Sheila Embleton and Brenda Brouwer, began their terms as LU’s interim president and provost, respectively, on Jan. 1, leading Laurentian through the post-CCAA period.
At the January meeting of Laurentian’s senate, Embleton shared some of her to-do list, which includes hiring a couple of third-party consultants (for operational restructuring and leading the development of a strategic plan) and hiring more faculty.
Laurentian University has also yet to reveal what real estate it is selling to the province. The university’s plan of arrangement laying out how it will pay back creditors is funded by the province’s agreement to purchase LU real estate worth up to $53.5 million.
