Sudbury's Art Gallery Reaches Deal to Save Collection from LU Insolvency Process

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The Art Gallery of Sudbury can continue to operate out of the Bell Mansion until 2025, under the terms of an agreement reached with Laurentian University, CTVNews reported. Laurentian has also agreed not to sell the art to help settle its debts as it works its way through insolvency under the Companies' Creditors Arrangement Act. After that process is completed, LU has agreed to give the AGS 90 days notice if it intends to sell the collection. The future of the AGS was in question after its assets were included in Laurentian University's insolvency declaration. Lawyers for the gallery went to court seeking to remove $6.39 million in assets from the process. They include the Bell Mansion (valued at $1.3 million), the art collection (valued at $4.8 million), as well as funds held in trust (about $216,000) and the library ($20,000). However, the monitor of the insolvency process, Ernst & Young, argued the assets belong to LU and it would be unfair to creditors to remove them from the process. The fate of AGS assets is of particular importance, since Greater Sudbury is planning to spend roughly $50 million building a new art gallery and library in downtown Sudbury, a project known as Junction East. Under the terms of an agreement dated June 17, the AGS can stay at the Bell Mansion until the new art gallery is completed, or May 30, 2025, whichever comes first. Read more.
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