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.
This has been a difficult time but staff, pupils and parents have shown an inspirational resolve and the College can only go from strength to strength from now on.
More top news
There's a definite chill in the air out there tonight! Temperatures in more sheltered spots have tumbled! But at least it's drying out!
The Wales team are preparing to play their biggest match in a decade as they take on Cyprus in their latest Euro 2016 qualifying campaign.
Welsh Conservative leader says UK 'must be willing to take its share' of refugees fleeing warzones in Syria.