Laurentian University exits creditor protection following insolvency

Laurentian University in Sudbury, Ont., has exited the Companies' Creditors Arrangement Act (CCAA) restructuring process that followed its insolvency in February 2021.

The university has continued to operate while dealing with its financial problems. Under the restructuring, it cut 76 programs in April 2021. As well, nearly 200 staff and faculty members lost their jobs.

The CCAA was created for commercial enterprises to help them restructure after an insolvency.

The future is bright for Laurentian.-Tammy Eger, interim president

In her recentspecial report on Laurentian University, Ontario Auditor General Bonnie Lysyk said there was a "strong argument that CCAA is an inappropriate, and perhaps damagingremedy for public entities."

Jeff Bangs, who took over asLaurentian's board chairafter the university's previous board members stepped down, said exiting the CCAA process is a positive step.

"While there is much healing and hard work yet to be done, today we emerge stronger with safeguards in place to ensure a sustainable, more transparent and inclusive future," he said.

"Reforming our governance, improving operations and heeding the recommendations of the auditor general will keep us on track but, most importantly, we must be committed to respecting all of the university's stakeholders as key decisions about the future are made."

Tammy Eger, Laurentian's interim president and vice-chancellor, said in a newsrelease that students and parents can feel confident if they choose the universityto advance their education.

"The future is bright for Laurentian,"said Eger, who became interim president after Robert Hachstepped down on Oct. 31

"We have work ahead to transform our institution, but the path forward is clear. We are inspired to realize the vast potential within our community," she said.

Laurentian said in a news release it will now start work on its next strategic plan and implement recommendations, including those from the auditor general, to improve its operations and governance.