Derek Joseph Harland

The Court of Appeal for Ontario refused leave to appeal a sealing order issued by a CCAA supervising judge in the Laurentian University insolvency proceedings.

The moving parties, including faculty unions, sought access to confidential documents (letters between Laurentian and the Ministry of Colleges and Universities) that were sealed to protect restructuring efforts.

The Court applied the Sierra Club test for sealing orders and the four-factor test for leave to appeal in CCAA cases, finding the proposed appeal was not prima facie meritorious, would unduly hinder the time-sensitive restructuring, and was not of sufficient significance to the action.

The court emphasized deference to the supervising judge's discretion in complex CCAA matters.

Laurentian University sought orders under the CCAA to apply a 65.8% Transfer Ratio to commuted value pension transfers for 27 individuals and to confirm a stay on pre-filing Pension Benefits Guarantee Fund (PBGF) assessments.

The court granted the application to apply the Transfer Ratio, finding it necessary to preserve pension plan assets and ensure equitable treatment among beneficiaries, despite objections from some affected individuals who argued they relied on a 100% transfer ratio.

The court also confirmed the stay on PBGF assessments, characterizing them as pre-filing obligations based on when the amount was determined.

This supplementary endorsement addresses a challenge to a sealing order granted in the Companies’ Creditors Arrangement Act (CCAA) proceedings of Laurentian University of Sudbury.

The sealing order covered confidential correspondence between the University and the Ministry of Colleges and Universities, which Laurentian University argued contained sensitive information that, if disclosed, could jeopardize its restructuring efforts.

Parties opposing the sealing order contended there was no evidentiary basis for it.

Applying the two-branch test from Sierra Club of Canada v. Canada (Minister of Finance), the court found that the disclosure posed a real and substantial risk to the University's future viability, that the "commercial" interest extended to the broader community, and that no reasonable alternatives existed given ongoing mediation.

Consequently, the court maintained the confidentiality of the exhibits and the existing sealing order.

Laurentian University (LU) sought an Amended and Restated Initial Order under the Companies' Creditors Arrangement Act (CCAA) to facilitate its restructuring.

The requested relief included an extension of the stay of proceedings until April 30, 2021, approval of a $25 million Debtor-in-Possession (DIP) facility, an increase in the Administration Charge to $1.25 million, and an increase in the Directors' Charge to $5 million.

LU also sought a stay of pre-filing and post-filing special payments to its defined benefit pension plan and a stay of requests under the Freedom of Information and Protection of Privacy Act (FIPPA).

The court granted all requested relief, finding it necessary and reasonable for the continued operation and restructuring of the university.

The sealing order for certain confidential exhibits was maintained pending a supplementary endorsement.

Laurentian University of Sudbury applied for an Initial Order under the Companies' Creditors Arrangement Act (CCAA) due to a severe liquidity crisis and insolvency.

The court found that the university, a not-for-profit corporation, qualifies as a debtor company under the CCAA.

The court granted the Initial Order, which included a stay of proceedings, authorization for pre-filing and post-filing payments to students, an Administration Charge, and a Directors' Charge.

The court also granted a sealing order for confidential correspondence with the Ministry to protect the restructuring efforts.