ABC Learning in Administration

ABC Learning : Safe as houses.

After delaying the release of its annual results for the third time, ABC learning centers was yesterday placed in the hands of voluntary administrator, Ferrier Hodgson. The company has 1,200 child care centers in Australia and New Zealand, and another 1000 in the United States.

ABC has loans from the CBA for in excess of $240 million. ANZ is believed to have an exposure of $182 million, while Westpac’s exposure is closer to $200 million. NAB has indicated its exposure is $140 million. Jointly the banking syndicate have appointed McGrathNicol as receivers.

Meanwhile, the Government has committed $22 million dollars to keep the centers operating until the end of the year. This will keep ABC Learning’s 16,000 staff in jobs and the 100,000 children across Australia in Child Care as a potential sale is sought.

» ABC child care goes under – The Sydney Morning Herald, 6th November 2008.