Bathla Group could be placed into liquidation as early as Thursday unless administrators secure millions of dollars to pay staff and suppliers, threatening one of Australia’s largest property collapses.
Teneo, appointed to run the western Sydney developer last week, told employees at a meeting in Girraween on Monday that it was urgently seeking funding before the next payroll deadline on Thursday. The administrators said they had so far been unable to secure enough cash to keep the business operating.
“We do not have enough money to pay their wages on Thursday,” Teneo senior managing director Stephen Longley told reporters after the meeting.
Some of Bathla’s 350 employees have reportedly gone more than eight weeks without being paid, with outstanding wages and superannuation obligations understood to exceed $2.5 million.
“There’s no cash here. We don’t have any cash to pay wages. We don’t have any cash to pay suppliers,” Mr Longley said. “So unless that situation can be resolved, we won’t have the option other than to close the business.”
Teneo is seeking about $20 million to fund the group for the next month, allowing time to assess its projects and establish a longer-term plan. The administrators have also borrowed $1 million from Teneo’s own head office to cover essentials including vehicle registrations, petrol and keeping Bathla’s operations running.
Bathla entered voluntary administration last Tuesday after its main corporate entity, Universal Property Group, reported liabilities of more than $3.2 billion. The group operates through hundreds of companies and has projects across Sydney, particularly in the city’s west.
Bathla’s future depends on urgent funding
Administrators are examining more than 200 development projects, with 45 already under construction and considered capable of being completed if further finance can be secured. Those sites are expected to deliver between 2,000 and 2,500 homes.
Mr Longley said lenders were keen to see the most advanced developments finished, but warned that the immediate priority was securing enough money to get through the week. Teneo has been speaking with representatives of about 43 private capital lenders in an attempt to assemble a solution covering the wider group rather than individual sites.
“We can’t just fix one site. We’ve got to fix the whole of the head office so that all of the sites can get up and running,” he said.
The New South Wales government has rejected a request for financial assistance. Premier Chris Minns said over the weekend that he hoped another financier or developer would take part in efforts to rescue the business, but no rival developer has yet publicly committed to doing so.
The pressure is being felt by migrant employees on Australian visas, who could face having to leave the country if they are made redundant and cannot find alternative work, Mr Longley said.
Bathla’s first formal meeting of creditors is scheduled for Friday, September 4. Until then, administrators are attempting to keep the company alive while determining whether projects can continue and whether a broader restructuring is possible.
