CFK Childcare Placed in Receivership

Australia's second largest childcare group, CFK Childcare, went into receivership on Wednesday, a day after its board placed the company in voluntary administration due to a failed asset sell-off to ABC Learning Centres Ltd., The Age reported today. CFK's board appointed BDO Kendalls as voluntary administrators on Tuesday and revealed the company was losing more than $400,000 a month. CFK has been unable to complete an $8.5 million sale of childcare centres to ABC Learning because the company, the nation's largest childcare provider, is also in administration and receivership, owing more than $1 billion. Ferrier Hodgson partners Max Donnelly and Steve Sherman were appointed receivers and managers of CFK's assets by the secured creditor, which is understood to be its banker National Australia Bank (NAB). The failure of the deal with ABC Learning meant CFK had not met one of the preconditions to any standstill arrangement with NAB and therefore could not complete its 2008 financial report. "The operations of CFK are continuing and the receivers will be working with key stakeholders to ensure as best as possible that the CFK centres remain open," Ferrier Hodgson said in a statement on Wednesday. There are 43 childcare centres in the CFK group, all in New South Wales. Read more.