G.communication group, a Nagoya-based operator of cram schools, language schools and restaurant chains, has been selected to take over part of the operations of failed language school chain Nova Corp., the two companies said Nov. 7.

The Ginza branch of troubled company Nova. JAPAN TIMES PHOTO

"Our company has been unofficially selected to sponsor Nova's operations," G.communication said.

G.communication said its subsidiary, G. Education Co., which runs a chain of 42 English conversation schools under the brand of EC Inc. mainly in Hokkaido, will take over part of Nova's operations and keep the failed companies' brand name.

G.communication said the subsidiary will initially take over the operations of 30 Nova schools from Nova's nationwide network of 670 schools and resume lessons.

The company said it will seek to build up a network of 200 schools.

G.communcation is likely to pay part of salaries yet to be paid by Nova to foreign instructors and Japanese employees.

On Oct. 26, Nova filed for court protection from creditors under the Corporate Rehabilitation Law as the scandal-tainted company gave up on trying to turn itself around.

Nova said it sought Osaka District Court protection under the weight of debts estimated at ¥43.9 billion, pledging efforts to find a sponsor for its rehabilitation under the supervision of court-appointed administrators to be appointed by the court.

The corporate rehabilitation law, recised in 2003, authorizes failed firms to sell their operations on the basis of court permission before full procedures for reconstruction have taken place.