In February, Childtime had entered into a letter of intent to acquire substantially all of the assets and liabilities of Tutor Time.

At that time, the Tutor Time system consisted of 235 child care centers located in 25 states and three countries, with an approximate licensed capacity of 45,000 students. Of the childcare centers in the Tutor Time system, approximately 90 centers were owned by Tutor Time, with the remaining centers being franchised by Tutor Time to third parties.

On March 21, Childtime terminated its proposed acquisition of Tutor Time. Tutor Time filed for bankruptcy protection on May 11. Most recently, on June 18, Childtime submitted a bid to purchase the assets of Tutor Time for $22 million plus the assumption of specified liabilities.

The company's bid, together with any other bid that may be submitted, will be subject to a hearing, and possibly an auction.

Childtime now has annual revenues of $142 million and a licensed capacity of about 40,000 children. A merger would have system-wide revenues of $290 million from 525 locations world wide and nearly 85,000 children, company officials say.