Laurentian University has filed for court protection under the Companies’ Creditors Arrangement Act.
Officials say starting the proceedings is the best path forward, and will allow them to restructure the Sudbury, Ont.-based school.
“The university has taken this step with a view to emerging as a fully restructured and financially viable institution,” a spokesperson said in a release on Monday.
“Current students will not see a change in their day-to-day education and Laurentian will continue actively recruiting new students.”
Ernst & Young Inc. is the court-appointed monitor in the proceedings.
Minister of Colleges and Universities Ross Romano called the move “unprecedented” and “deeply concerning” but said Laurentian students “remain the government’s priority.”
“We are focused on ensuring they can continue their studies without interruption,” he said in a statement.
“The government will be exploring its options, which could include introducing legislation to ensure the province has greater oversight of university finances and to better protect the interest of students and Ontario taxpayers.” Romano said.
“The government wants to ensure this issue does not repeat itself in other institutions in the post secondary educational sector.”
The province has appointed Dr. Alan Harrison to advise Romano.