Ernst & Young (EY), which has been involved in the reorganization of Laurentian University since the institution filed for protection under the Companies’ Creditors Arrangement Act (CCAA), will file with Judge Geoffrey Morawetz a motion to approve the costs. at $ 9,857,938.77.
This amount only includes services provided by the company 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.
Specifically, 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 Services.EY (EY FAAS).
Laurentian also owes the law firm more than $ 3 million Stikeman Elliott LLP.
These amounts include disbursements, i.e., amounts paid by EY or the law firm for its services which are then paid for by the client, for a total of $ 67,299.41.
8000 hours at $ 611 per hour
For the period from February 1 to December 31, 2021, EY charged 8045.2 hours at an average hourly rate of $ 611 per hour.
On his side, Stikeman Elliott LLPhandling the legal aspects, charged 3067.4 hours in the same period, with an average hourly rate of $ 900.
In the document prepared for the May 11 hearing, the lawyers indicated that these were hourly rates similar to those charged by other companies in Toronto 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 activity performed 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 attorneys also explained in the document that they allowed Laurentian University to save approximately $ 40 million per year thanks to its help in the first three months of the restructuring.
In an email sent to Radio-Canada, a spokesman for Laurentian University reiterated the procedure for CCAA is needed.
Such an extensive process requires a variety of costs, including compensation for the court -appointed monitor, his or her legal counsel, Laurentian’s legal counsel, and other associated costs.can we read
” These costs are more than offset by the savings gained through cost reduction measures and will help ensure the strength and viability of our university. “
The email clarifies that payments were made throughout the reconfiguration process.
Reaction of unions
I want to vomitsaid Tom Fenske, president of the Laurentian University Employees ’Union (SEUL), from the beginning, noting the numbers.
This is only a fraction of what it will costhe pointed out. Hopefully federal and provincial governments will look at this document and realize that it is taxpayer and student money spent in the process of CCAA.
In March, we learned that nearly $ 80 million was spent in the first months of the restructuring, among other things for costs related to dismissal of employees.
” Very frustrate to watch. Hopefully this drop doesn’t happen [à une autre université]. It’s really amazing, and seeing the details makes it even worse. “
Mr. Fenske said employees who lost their jobs are still waiting, more than a year, to find out if they can get financial compensation. Looking at this document for them must be incredibly annoying.
This is absolutely disturbing, when you think of the fate reserved for the members [du syndicat] deleted, with program cutsdenounced Fabrice Colin, president of the Association of Professors of Laurentian University (APPUL).
He specified that if the fired professors were no longer, technically, members of APPUL, the union would continue to represents the process of CCAAbecause their expulsion is a result of the mediation process.
MM. Fenske and Colin pointed out specifically the amounts paid to Ernst & Young nakakalokasince the use of CCAA Laurentian’s will be avoided, according to a report by Ontario’s Auditor General, Bonnie Lysyk.
If you look at it now, the people who put together this solution have a huge benefit.sighed Tom Fenske.
He hopes the government will take a closer look at what prompted Laurentian to use CCAA.
” Who led this process? When I see these amounts, I think that is a reason to guide someone into indebtedness. “
He believes Laurentian’s situation should be a wake-up call for the entire public sector.
According to him, companies like Ernst & Young see public institutions as cow’s milk.
A bill was filed by Senator Lucie Moncion so it is no longer possible for a university to appeal to CCAAgiving hope to Mr. Fenske.
Source: Radio-Canada