Tokyo — One of Japan’s largest foreign-study brokerages has collapsed under debts of more than $12-million, leaving an estimated 1,000 students out of pocket for the money, reports the newspaper Yomiuri Shimbun.

Gateway21, which had offices across Japan and acted as an intermediary between Japanese students and institutions in 13 countries, including some in North America and Australia, filed for bankruptcy this week.

The company, which sent 7,000 to 8,000 students abroad annually, was hit by problems this year after reportedly failing to pay its foreign business partners, who then refused to accept students. Questions are already being asked about why Gateway21 continued to accept money from clients even after its troubles became clear.

One student quoted by the newspaper said the company owed her $7,500, which she had paid to study at a language school in Canada. —David McNeill