Childcare giant ABC Learning says it is continuing to discuss its future with stakeholders, despite reports it would be placed into receivership today.

In a statement issued today, the company said it was continuing discussions with stakeholders including banks and the federal government to secure the future of its operations.

The Australian Financial Review said today that the company, which looks after more than 100,000 Australian toddlers and infants, would be placed into receivership.

The company may hand over control to administrators after failing to resolve its debt obligations, the AFR said.

ABC Learning, which looks after one in three Australian children in day care through almost 1100 centres, has been struggling to renegotiate debt built up as former chief executive Eddy Groves expanded into the US and UK.

ABC facing big loss

The company faces losses of more than $600 million in 2008, with accountants Ernst & Young preparing to restate at least two years of the company's prior earnings, the AFR reported, without saying where it got the information. CBA loaned $500 million to ABC, the newspaper said.

However, the company says its 1200 centres in Australia and New Zealand are continuing to operate as usual and pledged to keep stakeholders informed of any developments.

''All parties appreciate that the operation of ABC childcare centres is a major issue for communities throughout the country,'' the statement said.

''The primary objective is to ensure that families across the country continue to have access to quality childcare and that staff have a secure future.

''Centre staff, parents and children are, and will remain, our priority.''

Keen interest

Deputy Prime Minister Julia Gillard said the Federal Government was closely monitoring developments at the company, which has missed three deadlines to report its 2007-08 accounts to the Australian Stock Exchange.

The Government has set up a task force to ensure families are not adversely affected by any changes to the nation's biggest childcare provider.

''While it is not appropriate for the government to comment on an individual organisation's structural or financial situation, the government obviously takes a keen interest in the provision of childcare in Australia,'' Ms Gillard said.

''The Government recognises that ABC is working through detailed processes to provide information to the market and public.

''The Government's first priority is working families and their children and ABC Learning employees.''

Union concerned

Meanwhile, the industrial body representing ABC employees, the Liquor, Hospitality and Miscellaneous Workers Union, has called on both ABC Learning and the Government to end uncertainty about the fate of the company's centres.

''If administration does occur then it is imperative that the administrator and governments work together to ensure continuity of service for families and workers,'' union national secretary Louise Tarrant said in a statement.

''These centres provide an essential service for families, a service that is essential for families financially and for the wellbeing of their children.''

'Chicken-and-egg situation'

Childcare Associations Australia called on the company to urgently clarify its financial status and future directions.

"The commonwealth and the Queensland government have both indicated they have a range of contingency plans in place,'' president Amanda Morphett said in a statement.

"However, this is a chicken-and-egg situation, the government quite clearly cannot indicate what it might or can do because this could potentially influence the market outcome.''

Representatives of the child care sector are in a position to provide assistance to the government to work through the potential collapse, Ms Morphett said

AAP