Laurentian University Insolvent examines its real estate heritage
The University of Sudbury requests additional financing from debtors and restructures leeway in return in court
Laurentian University (LU) in Sudbury plans to examine its real estate to determine if its assets can be “monetized,” according to court documents filed by LU as it finalizes the initial phase of its restructuring.
Laurentian is returning to court under the Companies’ Creditors Arrangement Act (CCAA) on April 29 to seek an extension of the stay of proceedings that would protect it from its creditors until August 31 of this year. He is also asking for additional interim financing of $ 10 million in debtor in possession (DIP) on top of the $ 25 million DIP loan he already received earlier this year after the declaration of insolvency.
In an affidavit filed on April 21, the president of the university, Robert Haché, said that one of the next steps the university will take as part of its restructuring will be “a detailed appraisal of all real estate owned by LU and buildings rented to other parties.
“The purpose of the review will be to determine what assets may exist that could be monetized for the benefit of stakeholders, or which could create future financial efficiencies for the benefit of LU and its stakeholders,” said Haché.
“This process will also be undertaken with the help of external parties, including those with sector expertise.”
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Haché said Laurentian will also develop a plan to deal with its creditors.
Laurentian had a liability of $ 321.8 million as of April 30 of last year and owes $ 71.1 million to the Royal Bank of Canada, $ 18.5 million to the Toronto-Dominion Bank and 1, $ 3 million to the Bank of Montreal.
“Provided that the order sought by LU is granted, LU plans to file a motion for a claims processing order in May, in order to identify the universe of claims that may exist and to seek out this that all claims be determined, ”Haché said.
“Meanwhile, LU will also develop the framework for a plan of arrangement, so that when all possible sources of collection for creditors have been identified, a plan can be submitted to creditors.”
Haché also said that the next phase of CCAA proceedings will also involve “restoring trust and relationships with students, faculty, staff, donors and research granting agencies, lenders, communities we serve and all stakeholders.
“We are aware that this rebuilding process will take time, but we are determined to do whatever is necessary to regain any ground that may have been lost due to past events or this procedure.”
He also said that Laurentian also plans to review its governance process in order to implement best practices for the future.
“One of the commitments that will be made by LU, which is incorporated in the session sheets signed with each of the LUFA (Laurentian University Professors Association) and LUSU (Laurentian University Staff Union), is a In-depth review of all operational and governance issues within the entire university in order to identify and implement best practices for the future.
“To this end, LU will engage, through my office as President, an outside advisor with sector expertise to undertake an in-depth review of all areas. This process will include consultation with UL stakeholders and will be open and transparent. “