Laurentian University’s filing for protection under the Companies’ Creditors Arrangement Act has been endorsed by the courts.
Ontario Superior Court judge Geoffrey Morawetz (MORE-ah-wetz), which means the university now has until April 30th to come up with a restructuring plan.
The university announced it has filed for creditors’ protection, a move considered unprecedented in the post-secondary sector back on February 1st.
The judges also gave Laurentian approval to borrow $25 million in Debtor in Possession funding to allow it to cover its costs through April 30th.
The order also allows Laurentian to stop making payments to employees’ pension programs temporarily during that period and exempts it from replying to inquiries under the Freedom of Information and Protection of Privacy Act.
The institution has already stated that restructuring is likely to involve layoffs, salary freezes and loss of programming.
Court documents related to the university CCAA filing; https://documentcentre.ey.com/#/detail-engmt?
