Unsecured creditors of Laurentian University will vote on September 14 on a debt settlement proposal, following a ruling from the Superior Court on Thursday.

There will be a virtual creditors' meeting at 10 a.m. to vote on the arrangement plan, as the proposal was summoned under the Companies’ Creditors Arrangement Act.

If the majority of creditors approve the plan, the university will then seek final court approval on October 5, after which it will exit bankruptcy.

As part of the arrangement plan, the province will purchase $53.5 million of property from LU, which funds will be used to pay creditors.

The province is also lending LU about $35 million to repay private sector lenders who provided operating funds to the school while it was in bankruptcy proceedings.

Creditors will be repaid using $53.5 million from the property sale. The smaller group known as priority lenders will be paid in full, while the majority of groups still owed money - known as "affected creditors" - will be repaid at rates between 14.1 cents and 24.2 cents on the dollar.

Jeff Bangs, Chair of the Laurentian University Board of Governors, said in a press release on Thursday that the university is ready to move forward.

Bangs said, "Our students, faculty members, staff, industry, and community feel renewed optimism and pride in a strong and changing Laurentian University."