December 10, 2008 Article from: Australian Associated Press
THE federal government will provide an additional $34 million to keep 241 unprofitable ABC Learning centres open until March next year.
The decision follows an announcement by the company's receiver that 55 centres will close from January 1.
Federal Education Minister Julia Gillard said the receivers had a legal obligation to maximise the value of the company's assets.
"This means that under normal circumstances the 241 unviable centres would be closed,'' she said.
The government will make an application to have a court-appointed receiver installed to work closely with landlords, staff and parents to ensure continuity of care for children.
Government support will allow the 21 centres owned and leased by the Department of Defence to continue operating while new management arrangements are determined.
The full list of ABC Learning childcare centres marked for closure is available at www.childcare.com.au.
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