LaSalle College has taken legal action by filing for creditor protection in Quebec Superior Court, leading to the suspension of classes scheduled to commence on August 27 until further notice. The college sought to resolve its financial challenges through a restructuring process, which was addressed during a hearing at the Montreal courthouse. LaSalle College’s outstanding debt of $48 million to the province of Quebec prompted this move, as the institution aimed to negotiate a resolution with the government.
In a communication to students on their official website, the college assured that the class suspension is temporary and efforts are underway to resume academic activities promptly. The college’s president, Claude Marchand, warned in a letter to Premier Christine Fréchette that without a viable solution, seeking creditor protection would become necessary.
LaSalle College is currently facing penalties totaling $29.9 million for over-enrolling students in English-language programs between 2023 and 2025. Additionally, the government demanded the repayment of $17.9 million in provincial subsidies for the 2025-26 academic year. Marchand criticized the penalties as unjust and excessive, emphasizing that the college’s operational sustainability is at risk due to the financial burden imposed by the government.
The college highlighted discrepancies in the enforcement of enrollment quotas for English-language programs, stressing that all admissions exceeding the quota were done lawfully with government approval. LaSalle College’s financial concerns escalated following the substantial penalties imposed for surpassing enrollment limits, leading to the postponement of the start of classes in fall 2025.
LaSalle College initiated legal action against the government to contest the penalties, citing unreasonable quotas as a primary issue. The institution called for a revised debt repayment plan that aligns with its financial capabilities and requested the appointment of an intermediary by the Quebec government to expedite the resolution process.
Finance Minister Eric Girard emphasized the importance of compliance with the law by LaSalle College during an interview, noting ongoing discussions with the institution to address the situation. The college’s plea for a more feasible debt repayment schedule and the launch of a science program to attract domestic students studying in French were outlined in the letter to Premier Fréchette.
The college’s proactive approach to engage with the government for a sustainable resolution was underscored, while the office of Higher Education Minister Martine Biron refrained from commenting on the matter when contacted by Radio-Canada.
