Thorneloe loses court appeal in fight for survival as Laurentian University restructures

A three-judge Ontario court panelhas ruled Thorneloe University cannot appeal Laurentian University's move to do away with an agreement that saw the now-insolventschooloffer select courses to Thorneloe students.

Laurentian has been under creditor protection since declaring insolvency Feb.1, when it begantaking steps to restructure financially. Under the Companies' Creditors Arrangement Act (CCAA), Laurentian can continue to operate while getting its financial house in order.

In April, Laurentian dissolved federatedagreements with Thorneloe as well as two other universities Sudbury andHuntingtonsaying it would save money.

The University of Sudbury is pursuing its goal of becoming a standalonefrancophone university.

Huntington has not challenged Laurentian's decision, but Thorneloe has been fighting the move.

Thorneloe's hopes now appear dashed, with the Court of Appeal judges ruling severing ties with Laurentian was the "least undesirable option"for both universities.

Termination of the federated agreement is one of the conditions of abridge loan from financial institutions toLaurentian to be used for continuedrestructuring.

Laurentian's lawyer has also argued the university would close unless the federated agreements were discontinued.

Thorneloe, Laurentian still talking

In their decision, the judges wrote:"In our view, there is a risk that an appeal would be a distraction from the real-time restructuring efforts. Laurentian and the DIP Lender also raise legitimate concerns that attempting to 'unscramble the egg'through an appeal would unduly hinder the progress of the CCAA proceeding."

Thorneloe's president, Dr. John Gibaut, said the school'slawyers are looking atother legal options,but isn't sure what they might entail.

However, he saidThorneloe and Laurentian are continuingto negotiatea termination agreement, including severance for most of the faculty members whose jobs end June 30.

Gibaut saidwhile Thorneloe is changing and shrinking, it won't disappear altogether.

"We've gone from 2,500 students to 40 students, and we've gone from over 40 employees down to about four employeesas of the firstof July. So it's a very small operation, but we're still there and we're going to keep building from there."

Although the dismantling of the federatedagreement means Thorneloe can't offer courses to Laurentian students, it will continue to deliver an online religious studies certificate andretains ownership ofbuildingsincluding a residence and a theatre.

Gibaut saidthe residence may be a source of income in the fall if students return to Laurentian.

The professors working at Thorneloe delivered courses in ancient studies;women's, gender and sexuality studies;and religious studies.

Faculty members terminated June 30

Guy Chamberland, who taught ancient studies, said he's disappointed but not surprised that the appeal failed.

At age 60, he'll be one of two professors eligible for early retirement and doesn't plan to stay in Sudbury.

"My wife is from Hamilton, Ontario. Her mother cannot really be alone, so, there you go. I don't have any reason to stay in Sudbury, and I have other colleagues who have said the same thing. Now, they don't have any reason to stay here. So I think there will be a big loss to Sudbury altogether."

Younger professors are competing for scarce academic jobs elsewhere.

Jason Lepojrviemigrated from Finland to Sudbury with his young family to teach religious studies at Thorneloe three years ago.

"It looks like if I want to stay in academia, I will have to, we will have to move and leave Sudbury, which we've grown to love over the past three years, because Laurentianis basically the only viable employer," he said."So far, the most probableleads are in the U.S. and England, but we're weighing our options and we'regoing to, as a family, take our next step very carefully and prudently."