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Troubled independent school Llandovery College says it has now established a new company to take over the running of the school and re-employ its staff.
The college had been revealed to have debts running into several million pounds.
Teaching unions had expressed concern that staff had not been paid.
The new company, Coleg Llanymddyfri Cymru, has now issued contracts to all staff at the school from September.
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A meeting will be held to discuss the future of Llandovery College.