Sudbury News: Laurentian’s creditors to vote September 14 on debt repayment plan

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Laurentian University’s unsecured creditors will vote Sept. 14 on a proposed debt settlement, following a judgment by the Superior Court of Justice on Thursday.

There will be a virtual meeting of creditors at 10 a.m. to vote on the plan of arrangement, as the proposal is called under the Companies’ Creditors Arrangement Act.

If a majority of creditors approve the plan, the university will then seek final court approval on Oct. 5, after which it will emerge from insolvency.

Under the plan of arrangement, the province will purchase $53.5 million in real estate from LU, money that will be used to pay creditors.

While the province will own the property, LU will continue to have the same access to the property. The province is also lending LU about $35 million to repay private sector lenders who advanced the school’s operating funds during the insolvency process.

Creditors will be repaid using the $53.5 million from the real estate sale. A smaller group called priority lenders will be repaid in full, while the majority of groups who still owed money — called “affected creditors” — will be repaid at a rate of between 14.1 cents and 24.2 cents per month. dollar.

Jeff Bangs, chair of Laurentian University’s board of governors, said in a news release Thursday that the university is ready to move forward.

“Our students, faculty and staff, industry and our community feel renewed optimism and pride for a strong and transformed Laurentian University,” said Bangs.

For more information on the proposed plan of arrangement, click on here.

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