The University of Sudbury brought a motion to set aside a Notice of Disclaimer issued by Laurentian University under section 32 of the CCAA.
Laurentian University sought to disclaim the Federation Agreements with its federated universities as part of its financial restructuring.
The moving party argued the disclaimer was issued in bad faith, would cause significant financial hardship, and would negatively impact French language rights.
The court dismissed the motion, finding no bad faith, insufficient evidence of significant financial hardship to outweigh the restructuring needs, and noting that the moving party had already resolved to become an independent francophone university.
The court concluded the disclaimer was necessary for Laurentian University to present a viable plan to its creditors and avoid bankruptcy.
