Toza head withdraws bankruptcy claim

OSAKA -- The Kansai region president of the failed English-language school Toza Gaigo Gakuin submitted a request Wednesday to withdraw the company's bankruptcy claim from the Osaka District Court.

The adjudication of the bankruptcy claim had been expected the same day. The court will consider the request and is expected to decide its validity in a few days. According to the lawyers concerned, the withdrawal is likely to be accepted.

In such a case, an estimated 4,200 students, some of whom have paid as much as 2.5 million yen in advance tuition fees, may be forced to file for bankruptcy as creditors. Eighteen Toza Gaigo Gakuin schools in the Kansai region, which had been operated by a company called Alles, were closed in April following the closure of the Tokyo Toza schools earlier in the month.

Alles applied for bankruptcy May 11. The company's debt is estimated at 1.58 billion yen and its assets at 114 million yen.

According to the Osaka Municipal Consumer Center, some of the students complained that they had been advised to take more expensive courses until the school closed the classes. Most of the students had paid their entire tuition fees in cash, making a refund difficult.

The Osaka Bar Association will hold a meeting for the students June 13 at Osaka Bengoshi Kaikan in Kita Ward to explain the current situation concerning the school and possible action they can take. The meeting will be held twice, from 10 a.m. and 1 p.m.