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November 07, 2007

G. Communication to Act as NOVA Sponsor

The Nikkei is reporting that Nagoya-based G. Communication is to act as a NOVA sponsor and has bought rights to some assets in what appears to be a fire sale. The report suggests that 30 NOVA schools will open shortly with another 200 to open sometime in the future. (Before its closure NOVA had 670 schools.) G.Communication owns a number of education-related companies included EC Eikaiwa. According to the Nikkei report G. Communication has absorbed 3 of NOVA's businesses: 30 language schools, English lessons taught by videophone and NOVAs children's language classes. The group is not expected to take responsibility for the 60-70 billion yen in less fees paid in advance by students or refund those fees. The status of teachers' salaries is also unclear, but it is not expected that G. Communications will take these on either. Ken Worsley at the Japan Economy News & Blog is wondering whether this is good news for NOVA teachers, or a "farce".

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