Laurentian University Prepares to Deal with Claims from Former Staff, Unions and Its Many Creditors

Laurentian University is working through its insolvency process, preparing a way to deal with claims against it, including ones before it declared bankruptcy and after, CTVNews.com reported. In its fourth report, the accounting firm Ernst & Young outlined a process for handling financial claims from such parties as the banks, smaller creditors, its unions and former staff. The firm, which is the monitor for the process under the Companies' Creditor Arrangement Act, is seeking court approval of its proposals. With a few exceptions, there would be a deadline of July 30 to make a claim. After that, they would be "be forever barred from making or enforcing any claim against the applicants." The process would deal with three types of claims: ones that existed before Feb. 1, when LU declared insolvency; ones that arose as a result of the insolvency, such as from staff who lost their jobs or the federated universities who saw their agreement with LU terminated; and what are known as 'D&O' claims – claims against the directors or officers of the university for such things as financial mismanagement or negligence. The monitor's report gave a list of known creditors, including anyone owed money as of Feb. 1; the faculty and staff unions; the former federated universities; anyone with a contract or lease with Laurentian; and, anyone who began a legal claim against LU before Feb. 1. Once all the claims are filed, the monitor will try to resolve the claim consensually, accept the claim in full, accept part of the claim or disallow the claim entirely. Read more.
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