NOVA plans to decide on firm to bail out business by next week

Collapsed English-teaching company NOVA Corp., which has filed for financial protection, is in talks with several firms standing as candidates to bail out the company, it has been learned.

All of the firms are operating businesses, and none of them are investment funds, officials said. NOVA hopes to decide on a firm to provide financial support no later than next week.

Toshiaki Higashibatake, a lawyer serving as a protective administrator for NOVA, said that NOVA officials talked with one company in Tokyo on Monday, and two companies in Osaka on Tuesday. There were reportedly other companies that were interested in stepping in to aid NOVA.

All of the firms in talks with NOVA planned to shut unprofitable schools, and pick up the business by reducing the current number of schools by about half. Some firms were reportedly prepared to guarantee a certain percentage of lesson fees that students had paid in advance.

NOVA reportedly plans to give preference to a firm that will maintain the company’s nationwide network. It reportedly had offers from a firm wanting a split transfer, and received proposals from an investment fund, but turned the offers down.

http://mdn.mainichi.jp/national/news/20071101p2a00m0na014000c.html

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