The Minister for Education, Julia Gillard today welcomed the announcement by the Court Appointed Receiver (CAR) for the ABC2 Group that the sale and transfer process for the centres under its control is progressing well.
The CAR (Steven Parbery and Daniel Bryant of PPB Corporate Recovery), have commenced exchanging contracts for the sale of the first tranche of 65 centres.
This is good news. It means that these centres are likely to be transferred to new sustainable operators in the near future.
PPB is also confident that they can progressively secure new operators for most of the remaining centres in the coming weeks.
Due to the number and complexity of offers received, as well as the large number of stakeholders involved; PPB has requested that the Australian Government seek a one-off continuation of their appointment for six weeks.
Subject to the approval of the Supreme Court of NSW to the continued receivership, the Government will continue to fund losses during this period, up to 15 May 2009, drawing from unused funds from the previous $58 million commitment. No additional funding will be required.
The Government has always understood that this was a big job for the Court Appointed Receivers. Never before has anyone been tasked with selling 241 ‘unviable’ childcare centres.
The complexity of the Court Appointed Receivership is reflected in the fact that they are dealing with over 180 bidders whose bids relate to leases held by over 100 landlords.
PPB has indicated that it may not be possible to find suitable operators for all of the centres. If this is the case, the Government will work closely with PPB to ensure that as far as possible, alternative care is available for families that need it.
The Government is aware that this is an anxious time for the families and employees of these centres. That’s why the Government has taken steps to provide as much certainty as possible to the families and employees affected by the collapse of ABC Learning.
PPB has undertaken to announce the final outcome for all centres no later than 15 April 2009. In the meantime, the centres continue to operate.
PPB will continue to keep parents and employees regularly informed throughout this process and will be writing to them shortly to update them on progress.
Further information can be found at www.ppb.com.au/site/abc