According to an article in today’s Australian Financial Review, RCS "breached exclusive contracts to develop child-care centres in the US."
A spokesperson for RCS lawyers, Daryl Williams, said ABC misled RCS about the company’s financial health. ABC went into receivership six months after making a deal to build US child care sites, with RCS. The six year contract was to end in 2014, but include an option for additional seven year extensions.
Under the deal, ABC would buy 31 child care sites off Arizona-based RCS, once the centres achieved a minimum level of occupancy.
RCS is suing for $US87.3 million in lost profits, and about another $15 million in legal fees and costs.
ABC Leaning Centres went into administration last November with debts of more than $1 billion.
A marketing effort is underway to sell or lease ABC-owned child care centres in Australia.