Sudbury MP Viviane Lapointe said Tuesday evening that the fall economic statement includes plans to change the legislation that allowed Laurentian University to declare insolvency.
LU used the Companies’ Creditors Arrangement Act (CCAA) to declare insolvency in February 2021, leading to layoffs, program cuts and the end of its agreement with federated universities.
It was the first time a public institution used the CCAA to restructure, and the move led to an audit by the province that concluded the university had other options, but chose insolvency.
In a news release Tuesday, Lapointe said the feds “will take steps to amend the Act so that post-secondary institutions can no longer access the bankruptcy act as…
