The receivers of ABC Learning Centres desperately need a fresh injection of cash to keep the company’s centres running.
The receivers of ABC Learning Centres desperately need a fresh injection of cash to keep the company’s centres running.
The receivers revealed at a Federal Court hearing yesterday that a $10 million injection of funds from Westpac will run out today.
The Federal Government has tipped in $22 million to keep the company’s 1000 Australian centres running until 31 December, but receivers McGrathNicol will need to draw on more support from ABC’s banking syndicate, which are owed almost $1 billion.
McGrathNicol appeared before the Federal Court to get approval to draw down on bank funds to keep ABC’s centres alive.
Justice Arthur Emmett told the court: “The purpose of the funding is to allow the receivers to continue to operate the childcare centres at least up to the end of December. Without the funding… it may well be necessary to close all or some of the childcare centres before then.”
Receiver Chris Honey from McGrathNicol presented the court with a cashflow and costing summary for the company up until 31 December, although this was kept confidential.
ABC’s administrators will have the final say on whether the receivers will be able to draw more funds, although Justice Emmett said the receivers are well placed to provide advice on this matter.
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