A slimmed-down version of Laurentian University’s board of governors met Dec. 22, a week after 11 members of the board resigned in connection with a provincial financial package provided to the ailing university.
The board of governors meeting was supposed to be held Friday, but was abruptly cancelled and then rescheduled for this week after news of the resignations and the province’s financial bailout package became public on Thursday.
Former board chair Claude Lacroix, along with former vice-chair Sonia Del Missier, were both among those who resigned from the board last week.
Because of this gap in the board’s leadership, Wednesday’s meeting was chaired by board member Maxim Jean-Louis, who agreed to temporarily take on the role for the meeting.
Despite the mass resignation of 11 board members last week and this week’s announcement of the appointment of five new board members, the public portion of the meeting appeared to proceed in a fairly routine fashion.
Several agenda items beyond the drama regarding the shakeup in the board’s composition were tackled by the governing body.
Laurentian president Robert Haché gave his “heartfelt thanks” to the departing board members “for their unwavering commitment to the university in the face of tremendous adversity.”
Besides chair Claude Lacroix and vice-chair Sonia Del Missier, departing board members are Fabiola Garcia, Peter Faggioni, Kathy Dokis, Stuart Harshaw, Natalie Turvey, Karen Restoule, Nelson Toulouse, Martin Gran and Dr. Jennifer Jocko.
“They have worked tirelessly over the past year, and it is thanks to their passion and commitment that we are at the point we are at today,” Haché said.
Haché also welcomed five new members of Laurentian’s board of governors, whose appointments were announced this week.
He said these members are filling what’s known as “Lieutenant Governor in Council” positions (essentially provincial appointees), appointed to Laurentian’s board in accordance with the Laurentian University Act.
The new members are Debbi Nicholson, Don Duval, Robert Brouillette, Gerard (Gerry) Bilodeau and Jeff Bangs.
“Their leadership and support will help guide the university through to the completion of the CCAA restructuring, and shape the future of this institution,” Haché said. “We truly look forward to their leadership and working with them.”
Haché provided an update with respect to the financial bailout package provided to the financially ailing university, which has been undergoing court-supervised insolvency restructuring under the Companies Creditors’ Arrangement Act (CCAA) since last winter.
“With this announcement, new applicants who may be considering Laurentian can feel even more confident to study in the North,” he said.
Haché said the financial terms of the provincial bailout package include $35 million to refinance the existing debtor-in-possession bridge loan LU has taken out within the CCAA proceeding.
“This money will replace the existing $35 million loan that Laurentian University has with Firm Capital Corporation, with a new $35 million loan from the province of Ontario,” he said.
“The province also expressed an intention to replace the DIP facility with a long term loan upon Laurentian’s emergence from the CCAA proceeding with a successful plan of arrangement on terms yet to be agreed.”
He said the province will also provide up to $6 million in COVID-19 relief funding to Laurentian, as well as “enrolment corridor and performance protection” of up to a combined amount of $22 million over six years.
“This will ensure that the effects of the restructuring do not unduly impact Laurentian's operations and provides the university with a period to stabilize all of its operations following emergence from the CCAA,” Haché said.
