Well, that was fast. Right after the union submitted its written demand to METI, METI went right to work ordering Nova to pay its students their refunds.
The Japan Times, meanwhile, reports that Nova raised 70 million yen through the issuing of warrants for 200 million shares.
English-language school Nova Corp. has raised 70 million in cash by issuing warrants for 200 million shares in total to two investment companies registered in the Virgin Islands, according to a paper submitted to the Kanto Local Financial Bureau and released to the public Tuesday.
According to the paper, the scandal-hit language school will use the cash to cover such expenses as teachers' salaries and property rent.
If the two firms fully exercise their right to obtain new shares, for a cost of 7 billion in total, it would increase the number of Nova's outstanding shares fourfold, diluting the share value and thereby damaging the assets held by current
stockholders.
This is how desperate the situation is for Nova. Sahashi just mortgaged the future of the company for 70 million yen. The two firms get a free shot at taking over the company should Nova miraculously recover. For details on what the stock warrants mean for Nova, read this from Japan Economy News & Blog.
This 70 million yen isn't going to get Nova far. We know that paying its teachers runs costs Nova over a billion yen. In ordering Nova to pay refunds ASAP, METI has backed Nova into a corner. When the Toyo Keizai asked what tricks Sahashi would pull out of his hat, we now know the answer is "None." Where does Nova come up with the cash to pay for salaries and rent? Sahashi is all out of options although it's possible he could offer up some more of his stock in return for some cash. This surely would be enough, though. It sounds like the teachers are going to have to wait for their pay again so former students can collect their refunds. Uh-oh.
This could very well turn out to be Nova's last throes. Nova is to submit a report to METI on Monday outlining its plan for improving the company. Given that the JASDAQ stock exchange quickly
turned up its nose on the report it received, it's difficult to imagine Nova doing a better job on this one. Even if METI accepts the report, if Nova can't come up with the money the pay the refunds, METI just might put Nova out of its misery. It should be obvious to anyone following this debacle that Nova has no cash flow and no means for raising any serious cash that would keep the company afloat.
Update 10/12
Ken Worsely at Japan Economy News and Blog has updated his post to note that Nova's statement on the equity warrants has been corrected two times.
Nova issued a ‘corrected’ version of the document explaining this deal on October 10, and a second correction on October 11. The corrected version states, “新株予約権者が自ら新株予約権の行使をするに当たっての制限は無い。” I put it, “The warrant holders are not limited in the exercise of their warrants.” Adamu put it, “There is no limit on exercise of the options by the option holders themselves.” Seems that we’re in agreement here, there is no limit to how many warrants can be issued in a given month, and Nova may be in a position to receive the full value of the exercised warrants (about 6.4 billion yen) anytime after October 24th. This changes the course of possibilities somewhat, but most likely will make the possible set of outcomes no better for the company.
It appears that Nova may actually receive a big injection of cash, but this is nothing to cheer about. An injection of 6 billion yen would certainly help Nova pay salaries, rent, and maybe some refunds for a couple of months, but beyond that, it does not change the fact that its business model remains broken. If the two investors exercise all the warrants and buy the shares at 35 yen this month, the share price will tank. They can't be that stupid, can they?
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For F's sake, sink the ship
I know that alot of nova teachers read this...
I, and most of the people i know havent been working since october 1st. If everyone did this, the company would have gone bankrupt a few days later. Why are people going to work and prolonging the misery?
Lack of something better to do?
Devotion to the company?
Morbid fascination with the process?
Wanna bone students?
Im spending my time setting up a new company and looking for jobs, i suppose its advantages for me that most people still seem to be going, but i could be sitting pretty on employment insurance and working on the website for my new company if you fools would jsut STOP WORKING FOR FREE AT A COMPANY THAT WILL SOON BE BANKRUPT!
I have nothing but contempt for the japanese staff, who after i explained that if i dont get paid (which im sure i wont) i have no money to pay for rent, food, bills, or even a fricking ticket home! Meanwhile, 95% of the j-staff go home to mummy and daddy where their bills are paid, food provided and they are in a fine position to job hunt for as long as they need... After explaining all this, their only comment was that I could go to jail for soliciting students (to put bread on my table).
I have no time for stupidity. That also goes for the foreigners that continue to go to work in this environment.
STOP WORKING! SINK THE S#ITTY HOLE RIDDEN SHIP YOU IDIOTS!!
-Mod (Shiga)
Go to jail...?
Gee... I didnt know that. Exactly what rules would I be breaking if I carried out said solicitation?
They have no idea
I dunno. Its against the contract, specifically stated. I figure its not as illegal as not paying staff tho.
Oh, some advice?
I called head office and said i cant work because im stressed about my next paycheck not coming and about all the new teachers that nova keeps brining in asking me questions (as im an experienced instructor) and me not being able to provide answers as their is no communication from head office or management.
I then went to a doctor, told him, and he gave me a medical certificate valid until after pay day. If we get paid, fine, i'm covered. If we don't, fine, doesn't matter anyway. You can all do the same thing if you are worried about not going to work. Im sure you have enough savings until pay day if nova doesnt bite the bullet (this payday). And when it does, its only 5 days till employment insurance.
Hope you guys can get the
Hope you guys can get the money you're owed.
Thanks for the link and info. Shawn!
Great link to the Japan economics blog. THOSE guys really seem to know what they're talking about, unlike Saruhashi and the rest of management at Nova. I think by now it should be abundantly clear to all who've been paying attention, with the exception of those so self-diluted that they refuse to see the writing on the wall, that Nova is DEAD! Finally, the mysterious investor(s) have been revealed as nothing but a last ditch effort to prolong peoples hope that the company would survive. Kind of like people who refuse the pull the plug on someone who's already brain dead. Well can't say it was fun while it lasted because it wasn't. Of course there are those out there who I will miss working with and joking around with during breaks. I can honestly say that I met some pretty cool people during my time at Nova, of course there were more than a few loads who should've been swallowed, not to put too fine a point on it. For those of you still volunteering at Nova, you really need to wake up and smell the coffee that's burning in the coffee maker and stop going in because you will not be getting paid this month or anytime soon!
FUCK METI as well!
Please not in the above article that METI is going to force Nova to pay students.... but there is no mention of it helping teachers or japanese staff. The people in METI are bastards as well. They are racist. They don't care about the foreigner instructors. The primary customers are Japanese so they want to help them first.
Fingers crossed, some of you might get paid on pay day. If you have no attachments such as family, etc, buy that plan ticket and get home! The job market is shit now and will be for several months with the market flooded for instructors. Where will that 70 million yen go? Where else will they get money? LIARS, RACISTS, and INHUMANE people at the drivers' seats from Nova to METI.
And to think that Nova's demise was accelerated by a few unhappy consumers, just like a virus injected into a slowly dying patient... the ANGEL OF DEATH being METI. The foolish patient was already dying in the first place because it refused to change its diet and change its ways. Now, it's looking for or treatment (to prolong its demise), not an organ transplant (referring to the monkey brain).
We can see the sign already: NOVA REFUGEE camp
Nova, at least pay for the new teacher's tickets home and survival money if you are not going to pay their salaries! I wouldn't be surprised if Nova's next step is to close 80 percent of the Nova accomodation and ask teachers to resort to living in groups of 20 or so per apartment.
What the hell are those so-called investors thinking?! Nova is nothing more than a "corporate" beggar at this point. Who's getting the good end of the bargain? That 70 million yen is like a freakin disposable bandaid to a gash wound. We all know who is getting the good end of the bargain... no one and we are all going to be very pissed about it... for now until this story ends... hopefully, the sooner the better.
pay
I disagree! all regular instructors will be paid.....
Sahashi is closing the deal on something bigger....
His will! ( not future tense)
WHY?
Some of us have been going to work and why you have asked. Because potential new employers are picking people who are still working over people that are toppatsu-ing constantly. As of the 28th I am starting a new job which is much better conditions than nova ever was. When I enquired as to why I was chosen over people who were better qualified the answer was given that I continued to work. I wish you luck in your boycott but I hope you remember the more you arse about the more it hurts the students (they paid your salary for however long) it hurts your co-workers and it might hurt you.
You are more than welcome to
You are more than welcome to disagree. You are also more than welcome to put a dead cat on your head and walk aroung town dressed in a cardboard box while singing "I'm a little tea pot". Neither idea would be less rational. Your choice though.
I wish you all luck and hope
I wish you all luck and hope you can get your money next week. I also have a selfish motive for saying that. I'm still in the business of ESL, and it's been suggested to me by my company that a large surplus of instructors could actually lower overall wages in the entire industry. Nova's survival is good for me (maybe).
Why?!
Mate, if anybody was in an interview and they were stupid enough to say they were toppatsuing everyday, they deserve to not get the position. Its called LYING. Its something everybody does in an interview and a resume. If you don't, ur at a severe disadvantage, and if an employer thinks you aren't, they probably arent worth working for.
As i stated in my post, i've given notice for a lengthy absence and have proof that i was 'ill'. Im not 'arseing about' at work, and am working all day everyday to set up a new venture.
I dont care about the Japanese staff anymore. My BT had to stop some co-workers from ripping 1 of our staffs throat out because she was still lying to customers and taking 3 and a half grand in tuition fees last week. Mind you, anyone stupid enough to join nova right now deserves to lose their money, but that doesnt change the fact she was telling people 'Nova is fine, its a big company and the problems arent as bad as the media is saying'.
Sending the company bankrupt will do nothing but help my co-workers, and i wish people would start helping themselves. I've got all my bases covered for any eventuality, and i suggest other people do the same (even if it just means securing a loan in the event you have no other choice but to go home).
I just wish that people would wake the f%ck up, but congratulations to you on your new position.
"Its something everybody
"Its something everybody does in an interview and a resume. If you don't, ur at a severe disadvantage...."
You're wrong. I've never lied on my resume or in an interview (and I rarely, if ever, lie in other areas of my life). I don't have to, because I'm a good person with an education who works reasonably well. And I'm doing just fine for myself in life. Disadvantage, my ass! If you need to lie, then you SHOULD be at a disadvantage. Trying to cheat to level the playing field is pretty low.
Is this seriously what the world is coming to? Was the definition if "integrity" lost forever? I have some pity for people who feel as you do.
integrity? business!
Lying is part of business. Look at any business case study or autobiography of any companys CEO. They have all admitted to lying or cheating at some point to get where they are. Sahashi might be a dick who has fucked us all over, but there is no denying that at one stage he was very very sucessful, and what did he do? Lie. Look at any politician, i dont even need to justify that one.
Most of the lies come out when a company goes bankrupt or it becomes public, but you must be deluding yourself if you think that most people follow or should follow the ethics that you espouse.
You ask if this is what the world is coming to? Find on point in history where people were different. Its a fact of life, people will lie, cheat, steal, beg, borrow, deceive and do anything they can to succeed. People may only choose to do this when their backs are against the wall, some people might do it as much as they can get away with... Right now, most people are in a situation where:
They dont have a lot of savings, either through spending it or sending it home to pay off student loans as i have.
They dont have a ticket home, as nova recommended to new teachers not to buy a return ticket or they have been here over a year.
They dont think they will get paid, and are still turning up to work or working on their future.
They are in a job market flooded with teachers (that abc radio broadcast talked about 800 applicants for 1 position).
They dont have many contacts because they have mainly been socialising with other Nova teachers.
Seems like most peoples backs are against the wall to me...
Dont waste your pity on people 'like me'. I dont need it. Im a realist. If you want to pity someone, pity the new teachers who nova has fucked over the worst. Pity people like one of the new teachers who said to me he would be better off jumping in front of a train than being in the situation he is in now. Pity people like one of the new teachers who was in tears at work not knowing about her future. Pity people like a teacher i know who has been here for more than 10 years and has just had baby. He doesnt have time to look for a new job and needs a guaranteed income because his wife cant work.
Jail?
Insanity. We could be charged for soliciting students, but it is fine for them to continue to outright LIE to the face of customers in order to get them to hand over thousands of dollars?!
In response to the first
In response to the first part of your post, I just say that I strive to live my life in the most honest way possible. It makes me feel good. But I know that most people don't care. They know the difference between good and bad, they just don't care.
In response to the final paragraph, I agree and support it. It's a bad situation, and I do feel for those people.
My objection to the message you posted was basically that you were implying that people are dumb or handicapping themselves if they don't lie. I'd be the poor sucker cut from the country's Olympic team because he was the only one not one drugs. But I have managed to live a fairly decent life (so far) without resorting to such tactics.
anti-poaching laws
Hi there. I believe Japan does have anti-poaching laws which stops employees of any said company approaching existing clients from moving with them when he or she jumps ship.
However, in reality.....Nova is fighting fires on dozens of fronts at the moment. Nova is in no position to be stringing up teachers, who they have paid little regard to up to now, for poaching a private student. Af very worst, you might get fired......now, under current circumstances, that would be a tragedy........not!
Anyone who thinks Sahashi
Anyone who thinks Sahashi has only got 70 million yen out of this deal is crazy. He can get all the money up front...billions of yen. He may eventually lose control of the company but he has definitely secured enough cash to keep the company going. Staff and instructor payments will probably be late again this month because Nova won't get their hands on the cash until the 25th. apparently.
Many have ulterior motives for wanting Nova to go down the tubes, but I'm afraid it's not going to happen any time soon. Those who leave early will be the eventual losers...no chance of any redundancy pay and probably a very long wait for missed wages.
As an indication, the share price remains in the 35-42 yen bracket. Any company in imminent danger of bankruptcy would have either stopped trading by now or be in 1-5 yen range.
Doesnt smell right...
Thanks for trying to get our hopes up but...
He definitely secured the money? Doubt you really know that. If if you did, please let us know what else is going on in your crystal ball.
Fact is, if no company in Japan would bail Nova out, it is suspicious that a Virgin Islands investor would. Especially one who has little experience in dealing with English instruction.
Part of the reason the share price is not dead is because Sahashi and his family own whats left, they wont sell them.
No company would want to take control of Nova.
The company is being crushed by debts (ten times the market value), it has no assets to speak of and has not turned a profit in years, its reputation has been badly damaged, its suppliers have jumped off and are unlikely to return until debts are paid, it has closed dozens of schools and lost hundreds of students and teachers. The middle management has been gutted and very few people would take on these jobs in the future, Melbournes recruitment company has cut Nova off meaning that the shortage of teachers will get worse, and even if new teachers arrive, there is nowhere to put them - apartments or schools.
And then of course there is the clincher.....
Teacher morale has been badly shaken by all of this. Even if Nova has "billions of Yen" if teachers are not paid on the 15th, it is likely hundreds may leave or not come into work. This would be the final straw for Nova.
No Cash
He definitely has not secured enough money for either Monday or the 25th. Everyone is braced for the collapse next week! Resign today, call in sick from tomorrow. Start looking for something new.
organisenow doesn't know what he/she is talking about
EDIT: 10/11 23:00 Nova issued a ‘corrected’ version of the document explaining this deal on October 10, and a second correction on October 11. The corrected version states, “新株予約権者が自ら新株予約権の行使をするに当たっての制限は無い。” I put it, “The warrant holders are not limited in the exercise of their warrants.” Adamu put it, “There is no limit on exercise of the options by the option holders themselves.” Seems that we’re in agreement here, there is no limit to how many warrants can be issued in a given month, and Nova may be in a position to receive the full value of the exercised warrants (about 6.4 billion yen) anytime after October 24th.
vultures
there are all kinds of vultures all over the internet who just can't wait for Nova to go down the tubes for their own ulterior motives:to pick up cheap teachers (not so much vultures as the worst kind of leech), claim redundancy pay, not have to work at Nova anymore, prior bad experience with Nova (sweet revenge)etc.,etc.
Even Ken Worsley on his Japan Economy blog has always sounded like he hates Nova for some reason and as such his comments tend to bend the facts in an anti-nova direction.
Nova has broken the law on
Nova has broken the law on numerous occasions.
It has had Supreme court verdicts AGAINST it. Any company that must obfuscate through courts to gain time to continue it's illegal practices; deserves only utter contempt from the public.
NOVA has INTENTIONALLY defrauded 1000s of people. NOVA is a predatory company. Not my words, but those of the Ministry of Economy and Trade.
METI finally took the correct action in June to PROTECT consumers.
It was also FAIR WARNING to ALL foreign staff to leave the company a.s.a.p. If you haven't left, then you made a conscious decision and should be ready to pay the consequences.
Anti-nova? Any person with even a shred of morality would be anti-nova by default. Even those amoral souls amongst us would cringe at the practices endorsed by "companies" such as Nova, Enron, Qwest, etc.
Katakayne ? Is that Ken ?
Please, do me a favor with the self-righteous crap. Nearly every company in the world is "predatory". Defrauded thousands of people ? Complete and utter bullshit. Thousands and thousands have paid for a product and got it. In fact, thousands and thousands have not only got what they've paid for, they've signed up time and time again for the same product. METI's ruling was another piece of idiotic government which didn't take into the account its consequences...that consumers, far from being protected, would have a high probability of losing their money.
There was no fair warning given to anyone about anything. What kind of dullard are you ?
At this stage it is hard to
At this stage it is hard to doubt the fact that Nova has screwed thousands of people over. You can claim it's not that bad because every company does it but what kind of an argument is that?
Self-righteous? This has
Self-righteous? This has nothing to do with personalities...but companies acting as Good Corporate Citizens.
Losing 80 percent of what you paid for on cancellation, without being told beforehand, constitutes FRAUD.
Thousands and thousands have CANCELLED that service and have been RIPPED off with false and illegal charges (Supreme Court case back in April, remember?). Of course, many customers of Nova were able to gain some English skills and were able to improve their overall competency. But that's not the point.
Consumers are now being protected by being INFORMED. That's how consumer protection works. Some consumers will lose money, certainly but the fact that the general public will no longer have a predatory company maliciously misrepresenting a service for the foreseable future, is the best consumer (and employee) protection I can think of.
What kind of dullard are you NOT to be revolted by what has happened?
"Thousands and thousands
"Thousands and thousands have been ripped off" What a crock ! How many cases did METI site ? The customers who complained are a miniscule percentage. Even if there were others who didn't complain, it did not run to thousands and thousands.
If you cancel a teiki do they give you a full refund on the time remaining ? If you buy a certain number of lessons at a discount rate, why should you be entitled to a normal-rate refund?
Any punishment invoked should have been made on an individual management basis. i.e.Sahashi and other directors of the company should have been given personal fines accompanied by a severe warning toward future conduct. That would still send any message (if one was really needed), without inflicting undue pain and loss on thousands of students, staff and instructors. How could anyone argue with that ? They gave out a red card when it should have been a yellow.
P.S. Sorry I called you a dullard. I just get emotional on this issue because I strongly believe the supposed evilness of the company has been blown out of all proportion.
supposed evilness? I mean
supposed evilness? I mean c'mon...Nova is evil. Sahashi is evil. there is no question. A company that continues to take rent, insurance and other deductions from their employee's paychecks while not actually paying for any of the above is undeniably evil. blatant stealing = evil.
While Nova has some terrible
While Nova has some terrible policies that will eventually bring it down, the refund issue is actually unfair to the company. You should not be entitled to a discount rate if you cancel before you pass the threshold for discount. It basically nullifies the entire concept of "bulk discount", making it illegal and/or useless to even attempt it.
It's silly laws like that one that make me want to never start a business.
wages
no pay until 19th. well, they said "scheduled" for the 19th.
take your paid holydays. now.and leave.
"report from FACTA notes
"report from FACTA notes that the consumer affairs center had been requesting METI to do something about NOVA for years (6000 complaints in the past 5 months)"
Not a crock! And for all the thousands of official complaints...there are 10s of thousands who just shrugged and moved on.
It is Japan after all. Culture dedicates a lot.
Out of Proportion?
"The supposed evilness of the company has been blown out of all proportion".
Oh lordy lord where does I start with this one? How about the consistent lying by upper management to Japanese staff, students and instructors. And if they are not lying they are keeping tight lipped. Legally we call that misleading and dceptive conduct through act and omission. How about the fact that many people's lives hang in the balance? Surely, no one will die but what of the lives we have built here, the relationships we have formed etc? They don't give a shit!
How about stealing teachers money who pay their rent to the company in good faith. It's not enough to cream a tidy profit off the top. They have to STEAL the whole fucking lot. I know technically they will not be charged criminally and it will be a dead end civil dispute against a bankrupt company but it is plainly THEFT!
Some cunt(s) made a conscious decision to take that money. The consequences were obvious. Thousands of trusting teachers would be on the street in a strange country.
Please tell me what the 'proportion' actually is! We are owed 1 1/2 months salary at this point and they both legally and morally obliged to pay at least one month of that on Monday. We are half way around the world without a sgnificant amount of our [hard?]earned wages. They don't even have the decency to inform us of what is going on. They just try to pull the proverbial wool over our eyes.
What am I missing here? Pull your tongue out of the monkeys arse and maybe you will get a moe "proportioned" view of how bad this company really is.
METI's action is correct
"Please not in the above article that METI is going to force Nova to pay students.... but there is no mention of it helping teachers or japanese staff. The people in METI are bastards as well. They are racist. They don't care about the foreigner instructors. The primary customers are Japanese so they want to help them first."
Get a clue! Of course METI will stand up for the customers, as they should. You seem to forget that YOU are still an employee of NOVA! From METI's perspective, you are just as much a part of the NOVA organization as the president of the company! YOU, collectively along with all of the other employees of NOVA, have a responsibility to repay those fees. The non-repayment of the class fees is a CRIME. So far, the late payment of teacher's salaries amounts to nothing more that a nuisance. And if NOVA does go under, you teachers will have access to social services which will at least partially defer your losses. Those students will have no option except civil law suits which even if they win will not get them their money back.
If what I'm saying irks you, all I can say is you've known for quite a while now that NOVA is a bad employer, and yet you've chosen to continue working there. This is not intended as a blanket condemnation of people who have continued at NOVA and put in an honest effort to be professional. I commend that. But METI is fulfilling its duties properly by defending NOVA's customers, even at the expense of NOVA's paid staff.
Well Said and Well Deserved
Nova's sanctions are well deserved! Until today I was an inadvertant part of the NOVA monster. For the past few days I have apologised o students on behalf of my company because they lack the morals to sincerely do so. I have been embarrassed and ashamed of my company's actions and regret being a part of a process which will no doubt cause significant hardship to many student who have been so kind toward me.
I have refused to have anything to do with the sales process as I am adamant about not being involved in bringing new students into the company. While I could merely dismiss them as ignorant fools who deserve to lose their money for not paying attention to their surroundings, I feel it is important to remember that these people are willing to invest a substantial amount of both time and money to learn our language. We as teachers are in postion of trust. Do not recruit new students and do not shred documents for NOVA unless you know what they are. I for one am glad to no longer be associated with a company that is even more evil than a pr*ck like me!
Yeah! J-staff suck!
"I have nothing but contempt for the japanese staff, who after i explained that if i dont get paid ... their only comment was that I could go to jail for soliciting students (to put bread on my table)."
Yeah, the Japanese staff suck!
For example:
When my branch manager found out that I was solicitting students on my last week, she took the fliers I had made for myself and profread the Japanese, corrected it for me and then gave tips on which students might be the most receptive.
Oh... wait... that didn't suck. That was the opposite of sucking.
It was actually really generous and accomodating of her.
From this I draw the conclusion that the J-staff are generous and accomodating, all of them.
Or here is a thought. Maybe she was an individual person and as such responds to things in the way in which she thinks best. And if that's true maybe all the J-staff are individuals. And maybe if they are all individuals then it would be assinine to hold them all in contempt or reverence. Hmmm.... just a thought.
So in that spirit let's tinker with your previous statement, "I have nothing but contempt for the japanese staff `that I have worked with...`"
Now doesn`t that feel better?
*disclaimer: this post has not been spell, grammar, or fact checked in any way.
No Pay = No Me
I, like many others received the letter from good old Monkey Bridge that pay would be in on Friday, but to me thats not good enough. I see it as a stalling plan to keep teachers working for free. Just wait for the letter on the 19th saying that pay will come on the 25th.
I have told the staff and head office that I will not be in until I get paid and everyone has been really understanding about the whole issue. I did however tell the staff two days in advance so they could work around the problem. I find it really disturbing that so many teachers can act the way they do without any consideration to those they work with. SURE, things are pretty Fu^ked up, but the only ones your hurting right now is your fellow staff.
All I'm saying is that you should think before you lash out. Just think about who will feel the brunt of your angst the most.
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