Laurentian University president addresses insolvency and return to classes

Filing for insolvency was the only option available to Laurentian University, said the institution's president.

In his first CBC interview since late 2020, Laurentian President Robert Hach said the university's financial situation was so dire it had no other options but to file for creditor protection under the Companies' Creditors Arrangement Act (CCAA).

"While it was an extremely difficult decision to make, it was literally the only decision possible for the university," Hach said. "We simply had no alternative at that time but to take the route that we did. Otherwise, we quite literally would have had to close the doors of the university."

As part of the CCAA proceedings Laurentian cut more than 30 programs. More than 100 faculty and staff members were terminated in April 2021.

According to a report by a government adviser obtained by the Canadian Press earlier this year, in December 2020 Laurentian asked the province for $100 million to fund its operations and make termination and severance payments.

But the report by Alan Harrison said the government could not provide the $100-million in financial support without an independent third-party review of Laurentian's finances.

The province later offered Laurentian a $12-million grant to cover its operations until the end of March 2021.

Hach said a "multitude of events" over an extended period of time led to Laurentian's desperate financial situation.

"I think ultimately it comes down to expenditures that exceed revenues," he told the CBC. "And I think you've seen this is reflected in the restructuring that has occurred. It has been necessary for Laurentian to focus its activities in those areas where there is strong student demand."

A more focused approach

To that end, Hach said Laurentian will need to focus on programs that have more student interest.

"We are now focusing on programs that are in high demand for our students," he said. "And in fact, with our more focused programming, we will actually have more resources to invest in those programs that students actually want because we have had to close those programs where there was very limited demand."

But some, like Laurentian labour studies student Allison Desmoreaux, have argued the university has sidestepped its mandate due to its insolvency.

"I've seen the word polytechnic thrown around." she said. "It's catering to a very small sector of business instead of being welcoming to students from all over the place, studying a variety of different things."

Desmoreaux's program was among those Laurentian cut in April.

Due to its restructuring, Hach said the university has seen a decline in enrolment, which "was to be expected."

"We will be down just over 10 per cent," he said. "Although those numbers are still early we won't actually have final numbers for another few weeks."

In an affidavit to the Ontario Superior Court last month, Hach said Laurentian was forecasting a 30 per cent decline in first-year students. But he said final enrolment figures including returning students wouldn't be finalized until later in the fall.

Ongoing infrastructure review

In his CBC interview,Hach also addressed Laurentian's ongoing real estate review, which has sparked concern from community groups that want to ensure the trails and forests that surround the campus remain protected.

"We're mid-review, and it's really important to highlight that it's to look at what the infrastructure needs truly are for the university to ensure that we are right sized with respect to the infrastructure," he said. "If there is in fact infrastructure that is surplus to our needs and we can monetize that, that will be a positive for the university."

Looking ahead

Hach told the CBC he is hopeful for Laurentian's future.

"Our students, when they graduate, get jobs in the field in which they train in the top three in the province," he said. "And their starting salaries are also within the top three in the province. So those are very strong, positive outcomes for students. Our ability to focus on those programs that are strong will only help that going forward further."

Last month Laurentian asked a judge to approve an extension of its loan agreement, and a stay of proceedings against creditors, until January 31, 2022.