(Update) Moritomo Gakuen Files for Bankruptcy Protection
Osaka, April 21 (Jiji Press)--Moritomo Gakuen, a Japanese school operator at the center of a controversial state land deal, filed for court protection from creditors under the civil rehabilitation law on Friday.
Moritomo Gakuen, based in Osaka, western Japan, has liabilities of more than 1.6 billion yen, which may expand further, according to the school operator's attorney.
The filing was made with Osaka District Court. Moritomo Gakuen will explain the situation to creditors on Tuesday, and the court is expected to decide in early May whether to start the procedures, the attorney said.
The school operator drew controversy for its purchase last year of a state-owned plot of land in the city of Toyonaka in Osaka Prefecture at a price some 800 million yen lower than its assessed value.
Moritomo Gakuen acquired the land to open an elementary school but withdrew the school plan after coming under fire for the deal and the submission of false documents on construction costs to regulators.