It was a good day for Quest, its president says.
With the school facing millions in debt, the courts have granted Quest University an extension on financial protection that will keep it from going into bankruptcy or receivership.
On Aug. 7, the school announced in a news release that Justice Shelley Fitzpatrick approved an extension on relief granted under the Companies’ Creditors Arrangement Act, or CCAA.
It will last until Dec. 24, 2020.
The stay was scheduled to expire Aug. 10.
“We’re very grateful for Judge Fitzpatrick’s decision, and are relieved to have this additional time,” said school president George Iwama, in the release. “In addition to helping us deliver the fall term as smoothly as possible, the extension allows our proponents to conduct due diligence and also gives us time to enter discussions with other potential partners or developers. Today was a good day for Quest, and we remain optimistic.”
Quest asked for the extension so as to give it time to restructure and find a way to pay off its debts.
One option involved partnering with an organization that has since withdrawn from the process.
However, another potential partner has submitted a renewed letter of interest, the university says.
Quest says it also remains in discussions with a land developer on a proposal that involves a possible lease-back by Quest.
The school was also seeking to borrow an extra $2.08 million to keep operations afloat in the meantime, court documents show.
Quest’s news release says that this interim financing was approved as part of the extension, and Quest will have to show the interim lender that it’s made significant progress toward an agreement with a proponent by mid-October.
More details will be available in next week’s edition of The Chief.