Nova unable to pay the rent?

More grist for the Nova rumor mill has turned up in a post on a Yahoo! message board. This needs to be taken with a huge grain of salt since there's no way to verify the authenticity of the post. But if it is accurate, then it's a sign that Nova's coffers are truly empty. The letter appears to be from the president of Nova and explains that Nova has been unable to pay the rent for the past two months. It's not clear whether the rent being discussed is for schools or the rent for instructors' apartments.

For your reading enjoyment, here's a quick and dirty translation of the letter.

August 22, 2007
To:_________

Osaka-shi, Chuo-ku, Shinsaibashi 2-3-2,
President, Nova Corporation (seal)

I would like to take this opportunity to express my sincere apologies concerning the matter of unpaid rent for August.

Due to the administrative punishment on June 13 by the Ministry of Economy, Trade and Industry, and the subsequent coverage in the media, we have experienced a large number of students canceling their contracts. The cancellations per school is not large in proportion to the number of students, and appears to have passed its peak for the moment. However, the rush of refund payments has left Nova unable to pay rent allowances since July. Despite the promise that rents in arrears would be paid together with September's rent due on August 24, our present cash flow situation does not permit us to make these payments. Again, please accept my sincere apologies.

The effects of media coverage have subsided and the prospects for new student enrollments look promising. As most English conversation schools are closed for summer holidays, sales during this period will be slow, but every effort will be made to obtain funds through other means.

Unfortunately, I regret to inform you that at this time that no specific date can be set regarding the payment of rent for August and September's rent due on August 24. The end of the summer vacation should see more student enrollments, and Nova will take steps to ensure the payments are made as soon as possible. While current conditions do not allow for a specific payment date to be set, Nova is fully aware of its contractual obligations and would like to offer its assurances that it is doing everything it can to resolve this matter.

The Ministry of Economy, Trade and Industry Nova is currently providing Nova with guidance, and it is our priority to continue to push forward with reforms to improve our business. Every member of the Nova Group will do their utmost to regain the trust of its clients. Your cooperation in this matter is appreciated.

Original post

平成１９年８月２２日
○○○○株式会社　御中
大阪市中央区西心斎橋２－３－２
株式会社ノヴァ　代表取締役印押印

拝啓　時下ますますご清栄のこととお喜び申し上げます。
平素は格別のご高配を賜り、厚く御礼申し上げます。

さて、この度下記の８月分賃料等が未納となっている件につき、ここに謹んでお詫び申し上げます。

去る６月１３日の行政処分及びこれに係る報道の影響により、生徒様からの解約のお申し出が多数発生致しました。１店舗あたりのお申出数は、在籍生徒数と比べると決して極端に多い訳ではなく、お申し出自体も現在では一段落しております。

しかしながら、これに伴う解約返金が集中した事により７月以降の賃料支払の手当てが出来ない状態になり、この様な事態となりました。滞納金は８月２４日の９月分と併せて精算させて頂く事をお約束させて頂いておりましたが、この資金難の状態は今日現在においても変わらず、８月分滞納額のみならず、９月分のお支払も出来ない状態となっております。
重ね重ね、お詫びのしようもございません。

報道等の影響も落ち着き、新規入学者数も回復の兆しを見せ始めていたのですが、英会話業界における閑散期である夏休みに入り、売上に過度に期待できない時期になりましたので、現在その他のあらゆる手段を講じて資金調達に尽力しております。

しかしながら、未納となっております８月分賃料等及び８月２４日支払期の９月分賃料等のお支払が可能な時期については、誠に申し訳ございませんが、現時点においては支払日を確定させて頂く事ができません。

夏休み明けは、例年であれば入学者の多いシーズンに入ります。加えて一刻も早くお支払いができる様、諸策を講じております。現状では支払日を確約させて頂ける状況ではございませんが、契約条項を十分認識した上で日々尽力致しておりますので、誠に心苦しいお願いではございますが、弊社を取り巻く環境をご理解いただき、何卒ご高配賜れますよう、宜しくお願い申し上げます。

現在、経済産業省より改善の指示を受けた事項につき、最優先にて業務改善を進めており、引き続き経営改革に邁進して参る所存でございます。

また、一日も早く皆様からの信頼を回復する為にグループ社員一同、力を尽くして参りますので、何卒、ご協力の程よろしくお願い申し上げます。