Laurentian University in Sudbury, Ont., says it has cleared a key step in its bid to emerge from creditor protection.
The northern Ontario university says its creditors have voted to approve the institution’s plan that would allow it to financially restructure.
The chair of the university’s board of governors says it is now one step closer to ensuring that Laurentian will operate for years to come as a critical part of northern Ontario.
The next step is for Laurentian to seek a court order on Oct. 5 that would allow the plan to be implemented once certain conditions are met.
The school says the implementation of the plan, likely later this fall, will mean it has successfully emerged from restructuring as a financially sustainable university.
A report earlier this year on Laurentian’s situation from Ontario’s auditor general said that the university could have avoided creditor protection if it was more upfront with government about its financial struggles, which the AG blamed on “its pursuit of poorly considered capital investments.”