The province intervenes and provides financial support of $ 35 million to Laurentian in difficulty

In connection with the package, a total of 11 members of the Laurentian Board of Governors resigned this week

Laurentian University has announced that it is receiving financial support from the Ontario Ministry of Colleges and Universities.

The university announced last winter that it was insolvent and undergoing restructuring under the Companies’ Creditors Arrangement Act (CCAA).

Financial terms of the province’s support include $ 35 million to refinance existing DIP (Debtor-in-Operator) funding made available as part of the CCAA proceeding, a press release from Laurentian said Thursday.

The province has also expressed its intention to replace the DIP facility with a long-term loan upon Laurentian exit from the CCAA process with a successful plan of arrangement, on terms to be agreed.

Other terms include up to $ 6 million in COVID-19 funding for the university, and an enrollment corridor and performance protection of up to a combined $ 22 million over a number of years.

The university said in the press release that the province’s support program “will see the university emerge from its restructuring as a stronger, financially viable and vibrant institution serving students, employers and communities across the country. Northern Ontario ”.

“Laurentian is very pleased with this demonstration of the province’s continued support for Laurentian and its commitment to its long-term success,” said the press release.

“The university is grateful to the province for its help and collaboration throughout this restructuring.

The financial package will ensure that the effects of the restructuring do not unduly affect Laurentian’s operations and provide the university with a period to stabilize all of its operations after the CCAA exits, the statement said.

“Laurentian has appreciated MCU’s support before and throughout its CCAA restructuring and looks forward to continuing this positive relationship with MCU as a DIP lender,” the press release said.

In the same statement, Laurentian said a total of 11 members of its board of governors resigned on Wednesday.

“Laurentian is committed to accelerating the process of renewing the board of directors,” the press release said.

“In connection with the financial support program provided by the province and with two of the five vacant Lieutenant Governor in Council (LGIC) positions, the three current LGIC candidates for the Laurentian Board of Governors resigned yesterday, along with eight other Council members, for a total of eleven outgoing Council members.

“These resignations are effective immediately.

The province appoints five people to fill its LGIC candidate positions on the Board of Governors in accordance with the Laurentian University of Sudbury Act. The term “Lieutenant Governor in Council“Refers to” Lieutenant Governor acting on and with the advice of the Executive Council or the Cabinet “.

“Once integrated, Laurentian looks forward to working with these new board members,” the press release said.

“Laurentian wishes to acknowledge the commitment shown by its outgoing members of the Board of Directors during this difficult period in its history and thanks them for their volunteer service in the face of enormous adversity.

The statement added that with the announcement, “new applicants who may consider Laurentian may feel even more confident in their choice to study in the North, with a completely restructured university.”

“This provincial support program will benefit the entire Laurentian community, as well as the entire northern region it serves.

Laurentian added that the university “remains firmly committed to moving out of the CCAA restructuring process, so that it continues to be a university of choice for northern students, and that much work remains to be done. To do.

“As part of Laurentian’s ongoing efforts, the university has made a commitment to conduct a comprehensive operations and governance review, which is nearing completion. In addition, Laurentian will complete a comprehensive strategic review with the assistance of an independent third party, as it emerges on a solid financial footing.

“Laurentian is convinced that the province’s support program will significantly contribute to the university’s emergence in 2022 as a fully restructured and financially viable university.

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