Australia’s Deputy Prime Minister has today stated that the receiver, McGrathNicol, is assuring that childcare centres operated by ABC Learning Centres will remain open. Gillard states that this is a crucial job required of the Government as many Australians rely on these services.
Ms Gillard refused to state whether the Government is planning to use taxpayer funding to support the childcare centres. However, it was stated that the Australian Government was “working hard” to assist the creditors and McGrathNicol.
Today, the Commonwealth Bank (CBA) also announced that they were exposed significantly to ABC’s centres. The figure stated was $240 million. This brings the total exposure of Australian banks to ABC Learning centres to around $762 million.
It is said that around 120,000 children attend the ABC childcare centres and over 16,000 staff are employed within these. Updates of the Government’s status with ABC can be found on the My Child website.
1 response so far ↓
1 Wes // Nov 8, 2008 at 4:21 pm
It is increasingly apparant that if the banks sniff the slightest sign of weakness or an inability to repay debts they are not giving companies a second chance but deciding to force them into voluntary adminisration.
Rubicon another major company was forced into adminisration as well yesterday.
I expect this to continue in coming months as some major companies stumble.
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