This amount only includes services rendered by the firm for the period from February 1 to December 31, 2021.
The motion will go to a hearing in the Ontario Superior Court of Justice on May 11.
In particular, Laurentian must pay a bill of more than approximately $5.6 million from Ernst & Young, which acts as restructuring supervisor, and another of just over $1 million from Financial Accounting Consulting ServicesEY (EY FAAS).
Laurentian also owes the law firm more than $3 million Stikeman Elliott LLP.
These amounts include disbursements, i.e. sums paid by EY or the law firm for its services which are then reimbursed by the client, totaling $67,299.41.
8000 hours at $611 per hour
For the period from February 1 to December 31, 2021, EY billed 8045.2 hours at an average hourly rate of $611 per hour.
On his side, Stikeman Elliott LLPwhich handles the legal aspects, billed 3067.4 hours during the same period, with an average hourly rate of $900.
In the document prepared for the May 11 hearing, the lawyers indicate that these are hourly rates similar to those charged by other Toronto firms for the same type of services.
” The supervisor is of the opinion that his fees and disbursements as well as the fees and disbursements of EY FAAS and Stikeman are reasonable and appropriate in the circumstances, given the scope of the activity undertaken by the Monitor in the process of CCAA and the positive progress made in the complex and comprehensive restructuring of the applicant so far. »
Ernst & Young and its lawyers also explain in the document that they have enabled Laurentian University to save approximately $40 million a year thanks to its assistance during the first three months of the restructuring.
In an email sent to Radio-Canada, a spokesperson for Laurentian University repeats that the procedure for CCAA was needed.
Such an extensive process entails various costs, including compensation for the court-appointed monitor, her legal counsel, Laurentian’s legal counsel, and other related costs.
can we read.
” These expenses are more than offset by the savings achieved through the expense reduction measures and will help ensure the strength and viability of our university. »
The email clarifies that the payments were made throughout the restructuring process.
Unions react
That makes me sick
says Tom Fenske, president of the Laurentian University Employees’ Union (SEUL), from the outset, taking note of the figures.
Tom Fenske is the President of the Laurentian University Employees Union.
Photo: CBC/Erik White
It’s only a fraction of what it’s gonna cost
he points out. I hope the federal and provincial governments look at this document and realize that this is taxpayers’ and students’ money being spent on the process of CCAA.
In March, we learned that nearly $80 million had been spent in the first months of the restructuring, among other things for costs related to the dismissal of employees.
” It’s very frustrating to watch. I hope it’s the drop that will make this not happen [à une autre université]. It’s really amazing, and seeing the details makes it even worse. »
Mr. Fenske notes that the employees who lost their jobs are still waiting, more than a year later, to find out if they will obtain financial compensation. Looking at this document for them must be incredibly upsetting.
It’s completely distressing, when you think of the fate that has been reserved for the members [du syndicat] laid off, with cut programs
denounces Fabrice Colin, president of the Association of Professors of Laurentian University (APPUL).
He specified that if the fired professors are no longer, technically, members of APPUL, the union continues to represent in the process of CCAAas their dismissal is the result of the mediation process
.
MM. Fenske and Colin point out that the amounts paid to Ernst & Young are particularly shocking
because the use of the CCAA by Laurentian was preventable, according to a report by the Auditor General of Ontario, Bonnie Lysyk.
When you look at this today, the people who put forward this solution had a lot to gain.
laments Tom Fenske.
He hopes that the government will take a closer look at what led Laurentian to use the CCAA.
” Who led whom into this process? When I see these amounts, I think that’s a reason to guide someone into insolvency. »
He believes that Laurentian’s situation should be a wake-up call for the entire public sector.
According to him, firms like Ernst & Young could see public institutions as milk cows
.
A bill has been tabled by Senator Lucie Moncion so that it is no longer possible for a university to appeal to the CCAAwhich gives Mr. Fenske hope.
Reference-ici.radio-canada.ca