by Lexey Burns, Editor-in-Chief
Laurentian University releases “difficult but optimistic message” to students
University president Robert Haché says despite the school’s best efforts over the last year, Laurentian is insolvent.
This means Laurentian is unable to pay debts that are owed by the university.
In an email to students, Haché said that “Laurentian University has commenced a court-supervised proceeding under federal legislation.”
Ernst & Young Inc. has been appointed—at request of the university—by the Court as the court-appointed Monitor.
Haché said there were a number of factors that lead to “increased strain on the operation and financial health of the university.”
These factors include “historical recurring deficits, declining demographics in Northern Ontario, the closure of our Barrie campus in 2019 and the domestic tuition reduction and free that was implemented in 2019.”
Haché also noted the global pandemic has had a serious financial effect on the university, and that the university “commenced a proceeding under the Companies’ Creditors Arrangement Act (CCAA).”
This “will allow the University to financially and operationally restructure while continuing to operate in all respects,” he said.
Haché said the proceedings “will not affect the day-to-day operation of the University or the student experience that defines Laurentian.”
The most critical phase of the proceedings will take about three months, he said, with the goal being to “have a restructured framework for the University which provides a sustainable and clear path forward.”
Eric Chappell, President of the SGA, said that “Laurentian is facing unprecedented financial challenges and its financial health is amongst the weakest in the province.”
Chappell says the ongoing pandemic has only made the situation increasingly more difficult for the University’s administration to manage.
Malek Abou-Rabia, Vice President of Education for the SGA said “we should be empathetic to all members of our community in these tough times.”
“Although this news will not heavily affect the student population, our priority is to ensure every student at Laurentian has the ability to complete their degree with the highest quality possible and without major obstacles.”
Kelsie Bartolucci, a second-year Concurrent Education (ConED) student majoring in law and justice said that in three months, she’ll have to make a significant decision.
“If they can’t become financially stable I don’t have faith in getting a fair education,” Bartolucci said.
She says transferring to another school is something she definitely has to consider, “but if things continue to go this route which includes shutting down programs, I’m going to a university that can guarantee me a good and stable education.”
“If the university can’t afford to support their professors, how can I feel secure about being supported as a student?”
The announcement comes just one semester after Laurentian University announced they had a “$7 million structural deficit as well as the estimated $5 million to $10 million impact of the pandemic to date.”
At the end of last year, the university announced that the Jeno Tihanyi Pool and Ben Avery Gym need approximately $10 million in repairs.
Despite these previous statements, television station CTV said that “the university approached the province before Christmas seeking help on what was believed to be $100 million in debt.”
“A closer look at the books revealed that amount is closer to $200 million.”
The University said that they will offer complete transparency and answer any questions put forward.
They also offer “the most up to date information is available on our website.”