Interac to disband?

H/T to occasional reader “Samurai” on this one. Some poking around sent me to the Osaka General Union website, which has had this up for a couple days (Japanese only).

I’m not sure if this is some kind of liquidation or a reorganization; but I think that Interac is the biggest of the ALT Dispatch companies in Japan. The part I’d want to see more information about is whether this is involving the other two companies that are related to Interac: Maxceed and Selnate. Selnate is Utah-based, so it’s an American company doing business in Japan.

I suppose that more will be forthcoming. Again, it’s a disappointment that the Japanese government doesn’t just set up a “Teach for Japan” program and open it up to all qualified applicants. It would rationalize JET (Japan Exchange Teachers) and put some structure on this murky ALT Dispatch activity, where the news and surprises mimic what has been going on in the large-scale (e.g. Nova, GEOS) Eikaiwa mills.

Update – Footnote: Is this possibly just a way to shift Dispatch contracts to an affiliate that can front as “purely Japanese”, and thereby get around U.S. civil rights laws? Is it a way to get around paying overdue shakai hoken?

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9 comments

  1. Samurai · September 25, 2010

    The legal document giving notice of the buyout clearly states that Selnate is part of the deal. Maxceed is not mentioned. The three companies mentioned are Interac, Selnate and Alphis (which appears to have the same address as Advantage Partners…the buyout company)…as such I think Alphis is a fake company. On October 1st these companies will form one… AP18… which will either dissolve the company or create a new one and continue to run it…we all await to see what happens come next Friday. Like you though…I do have a feeling this has been done to hide something else…quite possibly a big shakai hoken bill as you mention. With 5,000+ ALT’s a bill for 2 years of backdated shakai hoken payments would be substanstial.

  2. hoofin · September 25, 2010

    Samurai, the Selnate mentioned seems to be Selnate of Japan. There is a Selnate in Utah–that looks to be the parent of both Selnate Japan and Interac.

    AP18 is set up to receive the assets. I assume it also takes the liabilities.

    The General Union puts out a number of questions on their post, and I can see where they would be concerned. What happens when a company that is disqualified from doing business with Osaka-fu is spun off into another company? Why would Advantage Partners take over Interac if it has more liabilities than assets? <—-This is my big question.

    Is this another Japanese bureaucratic scheme where a white knight (like G.comm) is lined up to take over a failing business, in order to minimize the fallout from bad press? Readers might remember that a cram school and izakaya outfit called G.Communications was picked to rescue both Nova and GEOS, before G.Comm itself ran into problems and had to be sold off to the company that runs the Matsuya chain of izakayas. (I think the name was "Foodys".)

    Isn't it better just to set up English teaching in Japan under government auspices, and with proper regulations? Why go through the shenanigans of multiple companies? Do the Japanese runners of things truly believe that non-Japanese have short memories? Where did they get this notion? On Senkaku Island?

  3. Samurai · September 25, 2010

    I just posted this on another site…but, I too, just like you, am wondering about the whole concept of creating a new company.

    The more one thinks about this situation the more intriguing it gets. Doubledare you are right…there is no mention of financial difficuties. This makes it all the more intriguing. If you read the following articles you will learn more about the illegal activities of Interac. One article is in English…but the more interesting one is the Japanese one…it gives additional information.

    http://japanichiban.com/Blog/2010/08/25/interac-found-guilty/

    Interac are banned from bidding for contracts in Osaka and Okayama. They have a very bad image in this part of Japan. They have blackmailed ALT’s…they have harassed an ALT who was living in a BOE sponsored apartment; which so upset the BOE in Kurashiki that they got rid of Interac and took on the ALT’s as direct hires…(for those who thought that a BOE would never take on an Interac ALT as a direct hire…well that theory just got squashed…they can and they have).
    As I say…Interac’s image in this part of Japan is shot!

    The more I read the above and think about the whole current situation I wonder…could (and I emphasize could) this just be an attempt by Interac to change their image? Destroy the old company…build a new one…change the management…and, well, you can see what I’m hinting at. It may sound like I’ve been reading too many conspiracy theory books but, I find it strange that Selnate, Interac and Alphis (a company appearing to be fake as it has the same address as the buyout company…Advantage Partners) are going to form AP18 on October 1st which will then either dissolve itself or create a new company that will continue with the current business. I am tending to believe the latter. I think the aim of Interac is to create a new company. I think AP are in collusion with Interac. Wow…as I read this back to myself I realize I have an Oliver Stone movie on my hands…

  4. hoofin · September 25, 2010

    There is nothing fake about any of the Advantage Partners companies. What I still wonder is why a buyout firm would be looking to pick up Interac, if, as is speculated, Interac is running into some difficulties?

    What are the assets that AP gets? It would have to be the servicing contracts with the various BoEs. That is the only way the new enterprise could make money. If Interac is banned from business in some locales, I don’t think AP gets to pick up that business by buying service contracts.

    If the government is expected to hit Interac for a big shakai bill, say 1,000 ALTs at $2,500 a piece or $2.5 million, it doesn’t seem like the kind of number to knock out a company with other business lines. A lot of these Utah-based companies are huge, and they know all the tricks and/or ways to get Congress in Washington to offer up more.

    So I don’t think it’s conspiratorial as much as some kind of reorganization meant to get around something else bigger. The J-Government likes to let situations they know about get way out of hand before they take action (think of the Bubble era. 1945, even.) Maybe this is just another installment in that series.

  5. hoofin · September 26, 2010

    I have to think yet another possibility is that Interac in Japan has a tax book loss or a credit that they might be able to apply to their American tax bill by getting rid of the company.

    If so, then Uncle Sammy is once again on the hook for a Japan subsidy.

  6. Samurai · September 26, 2010

    Today an employee of Interac told me that in a letter he received from Interac about the merger of Selnate, Maxceed and Interac forming one company called Interac Group, he clearly mentioned that AP18 was a Maxceed company. He was told this company had been working independently but was now going to be brought in to play a closer role.

    • hoofin · September 26, 2010

      Samurai, as of right now, it’s all very unclear.

      It makes no sense that a buyout firm would come and buy out Interac if Interac were broke. AP18 is obviously one of the Advantage Partners’ holding companies. Maxceed has been related to Selnate for a number of years, so it may be that Selnate Japan, Maxceed and Interac are all being folded into AP18.

      Outside money is only going to be interested in doing a deal if there is some way to get a gain out of it. So I have a feeling that nothing is going away. It might all just be a way to leave the bad things in one corporation, and transfer the good parts of a business over to another corporation–still partly owned by Selnate in Utah.

      Everybody watches Interac, because it’s influential in the Dispatch ALT market in Japan. So in a little while, we’ll all know what is up. Right now is just speculation.

  7. hynafol Daermaethor · May 28, 2011

    so happy I ditched interac…

    • hoofin · May 28, 2011

      I hear the good and the bad. The company obviously serves a purpose.

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