Editor’s note: This is the first of a two-part story on the current status of Laurentian University’s post-CCAA land sales to the province. Tomorrow, we get reaction from Laurentian, a local MPP, the faculty union and one of the professors fired more than three years ago as a result of Laurentian’s insolvency
Other than reiterating the deadline which is now a year away, the provincial government isn’t giving answers as to when sales of Laurentian University land to the province that are to fund payouts to the university’s creditors will be completed.
Sudbury.com has been reaching out to the province on the topic over the past few weeks, as Laurentian approaches the second anniversary of the exit from its 2021-2022 insolvency, which will be marked Nov. 28.
Sudbury.com contacted the ministries involved in these land sales, Infrastructure Ontario and the Ministry of Colleges and Universities.
We’ve also asked questions about the matter during a recent press conference here in Sudbury by Ontario Premier Doug Ford and another by Infrastructure Minister Kinga Surma and Infrastructure Ontario CEO Michael Lindsay.
The deadline for Laurentian creditors to be paid is the third anniversary of its exit from insolvency, so on Nov. 28, 2025. Most creditors haven’t received any money to date.
During Ford’s visit to Sudbury Oct. 28, Sudbury.com asked Ford why the Laurentian land sales process is taking so long, and how much longer it will take.
Ford did not directly answer our question, instead addressing Laurentian University’s current financial position following its nearly two-year-long 2021-2022 restructuring under the Companies Creditors Arrangement Act (CCAA).
“Well, let me tell you the good news,” Ford said. “Laurentian, they had a surplus they just announced of $37 million. So we're getting them back on their feet. They're moving forward, they’re restructuring through the insolvency. It's in front of the courts still right now, and we'll do everything we can to support them. But the good news is, they went from bankrupt into a $37 million surplus, a little over $37 million.”
(Ford was presumably referring to Laurentian’s surplus for the 2023-2024 financial year, which was actually $37.9 million).
Because Ford had not addressed the substance of our question, we asked again in our follow-up question how long the Laurentian land sales would take.
“Well, I have to look into it,” he said. “I don't have the exact date, but we're going to continue supporting Laurentian to get them moving forward, back on their feet and running a prudently fiscal university, let's say that, because before they weren't prudent fiscal managers. Now they're coming out of it, and we're going to make sure we stay on that.”
During her visit to town Nov. 14, Sudbury.com also asked Infrastructure Minister Kinga Surma the identical question we’d asked Ford during the question period following a press conference.
(This was despite interim Greater Sudbury CAO Kevin Fowke, who MCed the press conference, asking reporters to “keep questions aligned with the topic of today’s announcement,” which was focused on Starlink internet service in remote areas of the province).
“Thank you very much for the question,” Surma said, in response to Sudbury.com’s question. “I know how important it is. You know it is in the government of Ontario's best interest to make sure that the university is financially sound in the long term. This is something that is being explored and negotiated, but until the transaction is complete, I am not able to comment further. But we certainly support the university and the work that is underway to make it sustainable in the long term.”
Michael Lindsay, CEO of Infrastructure Ontario, was also at the Nov. 14 press conference in Sudbury, and we were able to speak to him before the event.
“I'm not sure how much I can share, given that some of those conversations are ongoing and decisions are still pending with the province of Ontario,” he said, adding that he’d have to take the question back to the ministry to get the current status.
Asked why the land sales process is taking so long, Lindsay said “I don't know that it is taking so long. I think what we're doing is we're thoughtfully working with the university and the province of Ontario to understand what this transaction looks like. You know, what various commitments are to be made in respect of the lease back of properties, etc. So I don't think it's taking long. I think the diligence that we're doing is the right diligence.”
Sudbury.com also requested to participate remotely in a Nov. 8 press conference in North York in which Colleges and Universities Minister Nolan Quinn was a speaker, in which we planned to ask him the same question we asked Ford, and eventually Surma and Lindsay.
However, we were informed by ministry staff that a phone-in option for the press conference was not available.
In late October, we also requested phone or Zoom interviews with both Quinn and Surma, and instead received emailed statements from their communications staff.
“In May 2023, the province approved a term sheet of properties to potentially acquire from Laurentian University for a cost of up to $53.5 million,” the statement from the Ministry of Colleges and Universities, said, in part.
“The proposed purchase of these properties by the province is intended to help Laurentian University with their path to financially sustainable operations. The ministry continues to work with its partners, including Laurentian University to ensure that due diligence and requisite approvals are completed prior to finalizing land sale transactions, all with a target completion date prior to November 2025.”
The Ministry of Infrastructure’s written statement reads: “Infrastructure Ontario (IO) continues to work with Laurentian University on behalf of the Ministry of Colleges and Universities and more information will be shared as it becomes available.
“IO is currently on target with the acquisition plans that were established with all parties to meet the province’s commitments. These are complex transactions that require considerable due diligence to ensure the requirements of both sides are met going forward, including seamless program delivery.”
Laurentian property sales: A backgrounder
The deadline for Laurentian creditors to be paid is the third anniversary of its exit from insolvency and the implementation of its plan of arrangement under the CCAA, so on Nov. 28, 2025.
Laurentian has already paid out $5.9 million to certain types of creditors (secured creditors and those owed vacation pay).
But two years after Laurentian’s insolvency exit, most creditors, which include former employees of LU, haven’t received what they’re legally due, which is actually only a small percentage of what they were originally owed.
Laurentian’s 2022 plan of arrangement states that a pool of cash of up to $53.5-million for creditors is to come from the sale of university real estate to the province of Ontario, which will be rented, in some cases, back to LU.
The minimum floor for the pool of cash has been set at $45.5 million. If Laurentian doesn’t fund the creditors’ distribution pool to at least that amount by Nov. 28, 2025, the university will have defaulted.
The land sales to the province were originally supposed to be completed within four years of Laurentian’s CCAA exit, but that was pushed up to three before creditors voted on the plan of arrangement in 2022.
While some information was provided by Laurentian in 2023 as to what properties the province is purchasing — seven parcels of land and five buildings, while safeguarding the campus greenspace — that deal hasn’t been completed.
Laurentian’s audited 2023-2024 financial statements did say that the sale of the Vale Living With Lakes and Watershed Building to the province is expected to be completed by the end of this year for proceeds of $8 million.
“All parties are working diligently to ensure sale proceeds on all earmarked properties are available to creditors by Nov. 28, 2025,” said LU’s annual financial report.
Heidi Ulrichsen is Sudbury.com’s assistant editor, also covering education and the arts scene. She has been covering the intricacies of Laurentian University’s insolvency and its aftermath since it was declared nearly four years ago , on Feb. 1, 2021.