Ontario’s Superior Court of Justice has approved Laurentian University’s restructuring plan as the school looks to emerge from creditor protection.
The Sudbury, Ont., university says the court’s approval Wednesday means it is now “weeks away” from being able to implement its plan to financially restructure.
The school says the implementation will mean it has successfully emerged from restructuring as a financially sustainable university.
The university’s creditors voted to approve the institution’s plan to allow it to financially restructure in September.
A report earlier this year on Laurentian’s situation from Ontario’s auditor general Bonnie Lysyk said that the university could have avoided creditor protection if it was more upfront with government about its financial struggles, which Lysyk blamed on “its pursuit of poorly considered capital investments.”
The northern Ontario university filed for creditor protection in early 2021, citing long-term debts and lower revenue as a result of COVID-19.