Judges release details of ruling in Laurentian University bankruptcy proceedings

Two Ontario Superior Court of Justice judges say they allowed Laurentian University to sever ties with three federated universities because the alternative was allowing the institution to go bankrupt.

Chief Justice Geoffrey Morawetz and Justice Cory Gilmore both issued endorsements of Laurentian’s plans on May 2nd, and have now released the reasons behind their rulings.

Laurentian had argued that given its insolvency, it cannot afford to continue to transfer around $7 million per year to Thorneloe University, the University of Sudbury, and Huntington University, so it severed the agreements with all three.

Two of the three fought Laurentian’s restructuring and severance plans, which one judge stated created a dilemma which would eventually lead to the collapse of Laurentian.

The school announced its insolvency in February and filed for creditor protection under the Companies Creditors’ Arrangement Act.

For the judge’s decision and court orders, go to: https://documentcentre.ey.com/#/detail-engmt?eid=459&utm= and scroll down to Court Orders for detailed documents.

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