LaSalle College has filed for creditor protection in Quebec Superior Court as it faces nearly $48 million in debt to the Quebec government.
The private Montreal institution says the amount includes more than $29 million in penalties for exceeding quotas on English-language students and nearly $18 million in overpaid subsidies.
The court granted the college a 10-day protection period to allow negotiations with the provincial government.
LaSalle College says the penalties are unfair and excessive, arguing the students were legally admitted with the required government authorizations. The college says the debt threatens its ability to operate and is seeking a new repayment agreement with Quebec.
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Students had been scheduled to return to class Thursday, but the college says classes will remain suspended until provincial subsidies, which have been withheld because of the fines, are restored.
A college spokesperson said changes tied to Quebec’s French-language law have reduced the number of English-speaking students the institution can admit, creating a shortfall of roughly 1,000 students. The fines stem from legislation adopted in 2022 that imposed limits on enrolment in English-language college programs.
According to the Higher Education Ministry, LaSalle exceeded its authorized quota by 716 students in 2023-24 and by 1,066 students the following year, resulting in penalties totalling more than $29 million. The ministry says the college knowingly exceeded its quota for two consecutive years. While LaSalle complied with the limits last year, the ministry maintains the rules were clear and that other institutions followed them.
The college is also required to repay $17.9 million in subsidies received last year, bringing its total debt to nearly $48 million.
College director Claude Marchand called the penalties “unfair and unprecedented” and said no company could survive a $30-million fine. He said the institution has presented the government with potential solutions and is asking for a realistic repayment schedule as well as authorization to launch a new science program.
–With files from The Canadian Press.
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