Surprise new bidder joins chase for ABC

ABC Learning Centres in New Zealand are being sold as a going concern. Photo / Bay of Plenty Times

A new bidder has thrown its hat into the ring to acquire the New Zealand arm of troubled Australian childcare chain ABC Learning Centres.

Despite the spectacular collapse of the ABC empire across the Tasman, ABC's 127 childcare centres in New Zealand escaped the receivers and are being sold as a going concern.

Local general manager Craig Presland has been promising a conclusion to the sale process for several months, but yesterday said a surprise new bidder had entered the frame.

"With the new player showing interest about three weeks ago the process has been delayed while they get up to speed in performing their due diligence," he said.

"The process is starting to drag on a little but we're quite happy to follow through with the new party. It would be a shame to make a hasty decision now."

He said the new potential buyer was a large childcare provider. He would not say whether it was local.

McGrath Nicol, receivers of ABC Learning Centres, were handling the sale and hoped to make a decision by June 30.

The intention was still to sell all 127 centres and the College of Early Childhood Education together.

Presland said the business was tracking well with around 84 per cent occupancy in the centres, and it had been profitable each month since he started in October.

"The longer the process goes perhaps the higher the price is getting given our continued success."

He said "three or four" other bidders were still on the shortlist.

One potential buyer who is now out of the picture is rival childcare provider Kidicorp.

Owner Wayne Wright said he had "lost interest" since his offer for the business was turned down about six weeks ago. "I offered what I thought was a fair price."

RIVAL LIQUIDATORS IN COURT

An unusual stoush has developed over who should handle the liquidation of an ABC Learning Centres-related company.

The 123 Global group existed to develop and onsell childcare centres to ABC on both sides of the Tasman.

As a result of the ABC receivership, 123 Global went into administration. Three of its New Zealand subsidiaries went into liquidation earlier this year.

Deloitte was appointed by 123 Global Holdings (Australasia) to handle the liquidations of 123 Global (NZ) and 123 Operations.

The High Court appointed McDonald Vague to handle the liquidation of the third Kiwi subsidiary, ABC Acquisitions.

However, in the case of 123 Global (NZ) it transpired that the Australian parent had appointed Deloitte outside of the required 10-day period following service of the court application to wind the company up. That meant Deloitte was not officially in charge.

Christchurch liquidator Gordon Hansen of PKF Goldsmith Fox was brought in, and creditors were asked to vote on who should be the liquidator.

The result was "hung", and now the court must decide who the liquidator will be. The matter is being heard tomorrow.

It is understood that a major creditor, Christchurch property developer Ireland Group, objects to Deloitte on the grounds of conflict of interest as the firm was appointed by 123 Global.

Considerable sums are involved - 123 Global (NZ) is estimated to owe $19.3 million, while ABC Acquisitions owes around $16.8 million. It is not yet known what 123 Operations' debts are.

One of the major creditors of the group is the New Zealand ABC operation.