no news , page-3

There is some news of a sort.

The lawyers for Orchard & AEU are currently opposing an application by the administrator to further extend the period when it reports back to its creditors. Not sure what the likely outcome is.

From Business Spectator today "ABC Learning has already been in administration longer than any other company in Australia's corporate history, a judge has been told.

Anthony Morris QC, for Orchard Capital Investments - one of the landlords of ABC childcare centres - is opposing an application by the administrator to further extend the period when it reports back to its creditors.

The ABC group went into receivership in November 2008 with debts of more than $1.5 billion.

In the Federal Court in Sydney on Monday, Malcolm Oakes SC, for the administrator, has applied for the date to be extended from September 30 to March 31 next year, an application supported by the receivers.

But Mr Morris said the length of the administration to date was already 10 and a half months - "the longest running administration in Australian corporate history".

"There is no statutory purpose which this proposed extension will serve," he said.

He submitted the real agenda was to allow the banks to maximise their return.

"No one other than secured creditors is going to get a cent. There is no money for anyone else, that is plain," he said.

The "pretence projected" by the administrator contending there was an interest in protecting ABC employees and parents of children at the centres was "a nonsense", he said.

Mr Morris said the only people who had a commercial interest that happened to coincide with that of the parents was the landlords.

He contended the only recommendation that any competent administrator could make was for the company to be wound up.

To need another six months to tell the creditors what "is the obvious outcome" was to keep it "undead" like in a vampire movie, he said.

Samantha Marks, for another landlord Austock, agreed with her colleague's submissions, adding the length of administration was "unprecedented" and to extend it would be going into "limbo".

Mr Oakes said if the judge did not agree to extend the time, the administrator could have the report ready by September 30.

But the main issue related solely to the sale and its facilitation.

"There is a viable business there, once you strip around the rest of the horror," he said.

The hearing is continuing before Justice Arthur Emmett. "