Nov. 7 (Bloomberg) -- Commonwealth Bank of Australia, the nation's biggest mortgage provider, said it loaned A$240 million ($159 million) to ABC Learning Centres Ltd., which was seized by lenders after the global credit crisis forced up interest payments.

The loan is in addition to the A$100 million provision against ABC's listed hybrid notes that Commonwealth took in August, the Sydney-based bank said in a statement to the stock exchange today.

ABC Learning, which looks after one in three Australian children in daycare through almost 1,100 centers, joins Allco Finance Group as the nation's second listed company to appoint outside managers this week. Former ABC Chief Executive Officer Eddy Groves, who left the business Sept. 30, borrowed to expand in the U.S. and U.K., almost quadrupling the number of centers the company operated in 2 1/2 years.

Outside managers from Ferrier Hodgson were appointed yesterday. Lenders including Commonwealth Bank and Westpac Banking Corp. named McGrathNicol as receiver to 38 divisions of the business yesterday.

ABC Learning's total debt at June 30, 2007, was A$2.2 billion, compared with A$111 million at the end of fiscal 2004. The company, which hasn't filed annual results for the year to June 30, 2008, owes money to Australia's four largest banks.

National Australia Bank Ltd. may adjust its provision for bad debts after it loaned A$140 million, it said in a statement today. Australia & New Zealand Banking Group Ltd., the worst-performing Australian bank stock this year, said yesterday the child-care operator owes it A$182 million. Westpac, Australia's second- biggest bank by market value, has a A$200 million exposure.

Commonwealth Bank said Aug. 8 it took a A$100 million provision against 4.46 million listed hybrid notes in ABC Learning worth A$220 million.

To contact the reporter for this story: Stuart Kelly in Sydney skelly22@bloomberg.net

Last Updated: November 6, 2008 17:51 EST