Fed: Childcare union glad Archer Capital missed on ABC centres

AAP General News (Australia)
12-09-2009
Fed: Childcare union glad Archer Capital missed on ABC centres

SYDNEY, Dec 9 AAP - The union representing childcare workers says the sale of the remaining
ABC Learning centres to a syndicate comprising not-for-profit welfare groups is a victory
for its members.

The LHMU said it was pleased that private equity company Archer Capital had failed
to win the bidding process for the 705 centres.

"LHMU members have worked hard for this outcome lobbying anybody and everybody to ensure
these centres were sold to an operator with a long-term commitment to quality childcare
committed to providing quality early education and care for families," LHMU assistant
national secretary Sue Lines said on Wednesday in a statement.

ABC Learning's receiver Chris Honey earlier on Wednesday named the GoodStart syndicate
as the preferred purchaser for the centre assets.

The syndicate includes Mission Australia, the Benevolent Society, Social Ventures Australia
and the Brotherhood of St Laurence.

Ms Lines said the past 13 months have been a difficult time for ABC Learning staff.

"Their hard work in keeping the centres going and in providing stability for the children
they care for and educate has finally paid off," she added.

ABC Learning went into receivership in November last year with $1.6 billion of debt.

Some 705 viable childcare centres are involved in the expected sale due to be completed
in early in 2010, following the successful exchange of contracts before Christmas.

The receivers have already closed 81 centres and sold 216 others, deemed to be "unviable",
to 78 new owners.

AAP klm/maur

KEYWORD: ABC LEARNING UNION

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