Check out http://www.letsjapan.org/forum/viewtopic.php?t=254781

(over a 100 pages and counting.)

The short version, NOVA’s system was to lock students into long term (3 year) contracts – where they get a discount for purchasing tickets (a ticket equals a group lesson). With the money they paid up front being used to cover present costs. Students were told they could book lessons whenever they wanted, but once signed up they found it difficult to book a lesson even 1-2 weeks in advance. So studnets may not have been able to use their tickets. When they tried to quit and get a refund on their unused tickets, they were charge at a higher rate. Some never bother to even seek refunds. So NOVA’s system counted on either students either not being able to use all their tickets, never claiming refunds, or being refunded at higher rates. Fortunately, this couldnt go on forever and recently they were penalised by the Japanese government (METI) and werent allowed to lock students into long term contracts. Hence, money dried and now funds are scarce.

Many expect NOVA to be bankrupt (or no longer able to meet staff / teacher salaries) within the next pay cycle (Oct 15).

Good to see other forums raising this question.