Laurentian University land sale formally ends insolvency process

Laurentian University closed a sad chapter in its history this week, selling more than $53M in real estate to help pay off creditors and exit the CCAA process.

Laurentian University has completed the sale of its real estate assets to the province, a transaction worth $53.5 million.

The transaction is a major milestone that marks the end of the financial crisis that saw Laurentian become the first university in Canada to declare insolvency.

The sale of the property was a key condition to access provincial funding to help end the crisis.

Laurentian successfully exited the CCAA process in late 2022, however, the university still had to complete the final steps, which included the sale of real estate assets and the distribution of those proceeds to creditors.

Thursday, LU announced via an internal memo that the university had finalized the sale of properties to the province.

Fabrice Colin, president of the Laurentian University Faculty Association, said the news marks the end of a tragic chapter in the school’s history that saw many faculty members lose their jobs.

“There will be a sense of relief from many members,” Colin said.

“It was a very long process, especially for … terminated employees and terminated faculty members who were waiting to get a part of their severance.”

‘Bittersweet’ moment

Sudbury MPP Jamie West said it’s a “bittersweet” moment.

“On the one hand, it’s a reminder of what happened,” West said.

“On the other hand, it’s a step forward towards exiting that process completely and sort of that positive rebirth of Laurentian that we’re all looking forward to.”

Among the properties being sold are the east residence, the Northern Ontario School of Medicine/health sciences building, and the Vale Living with Lakes Centre, which was finalized last December.

The university will lease back three of the properties to ensure continued use of the facilities.

“It represents only 24 per cent of what was sold to the creditors,” Colin said, adding the job losses showed “how cruel the process was.”

Laurentian said the university’s president would not be commenting publicly, but stated in the memo that the final steps in the process will be completed as of December.

“The completion of the sale of real estate assets to the province is a critical step in enabling Laurentian University to complete the requirements of the CCAA process,” Dr. Lynn Wells said in the memo.

“With this sale completed ahead of schedule, we will be able to execute the final steps in the process and begin a new chapter in December.”