Laurentian files for court proceeding under the CCAA

February 3, 2021
Laurentian University has announced that it has commenced a court proceeding under the Companies’ Creditors Arrangement Act. The university states that it has been facing increased financial challenges due to factors such as low and declining enrolment, the 2019 tuition freeze, and the costs associated with the pandemic, and that these proceedings are “the best path forward … to financially and operationally restructure the University.” CBC reports that Laurentian’s current students will continue their education as normal, and Laurentian will continue to recruit new students. Government of Ontario Minister of Colleges and Universities Ross Romano described the move as “deeply concerning” and announced that Dr Alan Harrison would act as special advisor to Romano on the situation. Romano further stated that the province is exploring its options in order to “ensure this issue does not repeat itself in other institutions.” CTV News reports that prior to Laurentian’s filing for creditor protection, the faculty union issued a news release demanding that the university “prove it was in financial distress.” Laurentian | ON | CBC | CTV News (ON )