# LaSalle College financial and legal crisis

> Live situation record from CLSTR: https://clstr.news/situations/lasalle-college-financial-and-legal-crisis
> Updated: 2026-09-03T22:16:15.000Z. Sources: 6. Developments: 2.

LaSalle College in Montreal entered creditor protection following a $30 million fine from the Quebec government. The penalty was issued for exceeding enrollment limits in English-language programs under a 2022 provincial language law. The college also faced the withholding of academic subsidies, which caused scheduled classes to be placed on hold.

Following a court decision, the college has been permitted to resume classes. Superior Court Judge Martin Castonguay extended the institution’s creditor protection to allow for the negotiation of a payment plan. The college faces approximately $48 million in total debt, comprising the $30 million in fines and a requirement to reimburse $17.9 million in previously received subsidies. 

The court ordered the reinstatement of government subsidies during this transitional period to prevent a total shutdown that would affect thousands of students, noting that the government had not provided a viable path for debt repayment.

## Timeline

### 2026-09-03: LaSalle College resumes classes following creditor protection renewal

A Quebec judge has extended creditor protection for Montreal’s LaSalle College, allowing classes to resume while the institution negotiates a repayment plan for $48 million in fines and subsidy reimbursements.

2 sources. https://clstr.news/cluster/lasalle-college-resumes-classes-following-creditor-protection-renewal

### 2026-08-24: LaSalle College obtains creditor protection after $30 million fine

LaSalle College has entered creditor protection after being fined $30 million by the Quebec government for exceeding English-language program enrollment limits.

4 sources. https://clstr.news/cluster/lasalle-college-obtains-creditor-protection-after-30-million-fine

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Cite as: LaSalle College financial and legal crisis. CLSTR, https://clstr.news/situations/lasalle-college-financial-and-legal-crisis
