A Castle Built on Sand Part 1

The FujiSankei Business i recently ran a three-part series on the rise and fall of Sahashi. This will be a rehash of events for most readers, but the series drives home the point that Sahashi's hubris brought the company down. Here's Part 1.

Part 2

Part 3

The tragedy of a minor business: Dogmatism and reckless money schemes

The collapse of NOVA is the tragedy of a minor business involving played out against the backdrop of Sahashi's dogmatism, reckless money-raising schemes, stock speculators, NOVA shares as collateral, and personal cheques.

NOVA was immediately plunged into crisis when the Ministry of Economy, Trade and Industry sanctioned the company last June. It's main bank cut off funding and students started asking for refunds in droves.

"I'm short of money. Help me out"

According to a former employee, at the same time NOVA was being punished, Sahashi was begging Shinsei Bank for money. At the end of June, NOVA's bank account was down to ¥200 million. The salaries of the staff and instructors alone cost NOVA ¥1.5 billion a month.

There were negotiations with several investment funds in July but talks always broke down at the last minute. Shinsei Bank wasn't returning Sahashi's calls. It was at this point he turned to the ¥320 million in the employee's welfare fund.

Around the same time, an executive at an investment company was asked if he was interested in "doing" NOVA. Speculators and brokers swarmed all over NOVA's stock.

According to his lawyer, Sahashi believed he could get out of his predicament if he could scrounge together ¥10 billion. He turned to even more dangerous money-raising schemes.

Before NOVA filed for protection under the Corporate Rehabilitation Law, it announced a plan to procure ¥6.4 billion. Enter the head of an investment consulting company with a checkered past of suspected stock manipulation. An advisor to the "big fish" says he played a role in arranging the money.

In addition to the massive amount of money to be procured, there was also a loan worth tens of millions of yen. While signing for the money, Sahashi was told that he would have to immediately pay the interest on the loan if he ever backed out of deal and its high interest rate. The big fish sold the NOVA shares he was holding as collateral. NOVA's share price plummeted, and things went from bad to worse as Sahashi offered a personal cheque as further collateral.

Says an official with the Osaka Labour Bureau, "The ¥10 billion was a drop in the bucket. The emperor had no clothes and the death knell for the company was the belief that it wouldn't collapse because it was listed on the stock exchange."

***

NOVA climbed its way to the top with phrases like eki mae ryuugaku and ocha no ma ryuugaku (English in front of the train station and English from your living room). But NOVA was a castle built on sand as those phrases never resonated with the staff, even its closest confidantes, who beat a path for the exit as fast as they could.

This was the rise and fall of an autocratic businessman who was once called "charismatic."

Original article

【砂上の楼閣ＮＯＶＡ】（上）「中小の倒産劇」　独断で無謀な金策

FujiSankei Business i. 2008/7/1

ワンマン社長は、経営の窮地を乗り切ろうと独断で無謀な金策に突き進んだ。「まるで中小企業の倒産劇」。　英会話学校最大手だったＮＯＶＡの元社長猿橋望（さはし・のぞむ）容疑者（５６）は仕手筋の人脈を頼り、身が保有するＮＯＶＡ株や小切手を使って借金を重ね。

昨年６月、経済産業省から一部業務停止処分を受けたことで、一気に深刻な経営状況になった。従来の取引銀行からは新規融資を断たれ、受講生の中途解約も相次いだ。

「資金ショートする。助けてくれ」

元社員によると、猿橋容疑者は、処分と同時に財務支援役に就いた新生銀行の担当者に懇願した。６月末の預金残高は２億円を割り込んでいた。社員や講師の１カ月分の給料だけで約１５億円。危機的状況だった。

７月に入り、複数の投資ファンドとの提携話が進んだが、土壇場で契約を拒否。新生銀の連絡にも応じなくなった。逮捕容疑の積立金約３億２０００万円の流用はちょうどこのころだが、状況が変わることはなかった。

同じ時期、ある投資会社幹部は仕手筋に「ＮＯＶＡをやらないか」と誘われた。一斉に仕手筋や金融ブローカーがＮＯＶＡ株に群がった。

代理人弁護士によると、猿橋容疑者は当時「１００億円かき集めれば窮地を乗り切れる」と考えていたという。既に危険な金策にのめり込んでいた。

ＮＯＶＡが会社更生法申請前に発表した約６４億円の調達計画。仕切り役とされたのは、株価操縦疑惑が取りざたされたことがある都内の投資コンサルタント会社の代表だった。大物仕手筋の側近が関与したとの情報も流れた。

巨額の資金調達の一方で、数千万円の借金も。いったん契約しながら高利を理由に断ると、「無効にするには今すぐ利息を払う必要がある」と貸金業者に言われ、借りた札束を懐に収めたこともあったという。業者は担保のＮＯＶＡ株を即座に売却。株価は下落し、追加担保として小切手も振り出す悪循環に陥った。

なりふり構わぬ金策について、大阪労働局の幹部は「１００億円でも焼け石に水だった」と認識の甘さを指摘。「まさに“裸の王様”状態で、上場企業の倒産とは思えない断末魔だった」と語った。

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「駅前留学」「お茶の間留学」をうたい文句にして業界最大手に登り詰めたＮＯＶＡ。
しかし、社員は定着せず側近も次々と去るなどその足元は驚くほどもろく、まさに「砂上の楼閣」だった。かつては“カリスマ”とも呼ばれたワンマン経営者の盛衰をたどった。