Laurentian 'Strategically Planned' for Its Insolvency, Auditor General Says in Scathing Report

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In a scathing report, Ontario Auditor General Bonnie Lysyk said she believes the data shows Laurentian University did not have to file for creditor protection under the Companies Creditors’ Arrangement Act (CCAA), Sudbury.com reported. This action was “strategically planned” and Laurentian “chose to take steps to file for creditor protection in the Ontario Superior Court of Justice on February 1, 2021.” “In our view, there were many people hired by Laurentian who were more focused on laying the track that guided the train toward the CCAA process, and less on working co-operatively and with full transparency with the Ministry of Colleges and Universities and faculty and staff labour unions,” Lysyk said. These assertions are among those in a 13-page preliminary report on Laurentian University’s finances tabled by Lysyk on April 13. Laurentian University continues to undergo court-supervised restructuring after declaring insolvency more than a year ago. The restructuring has included massive program and employee cuts, and the termination of ties with the federated universities operating on campus. Yet to come is a “plan of arrangement” in which Laurentian makes a plan to pay off its creditors, and finally exit the CCAA. The auditor general was tasked with a value-for-money audit of Laurentian by the Ontario legislature’s Standing Committee on Public Accounts almost a year ago. Read more.
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