Funding talks for Sydney property developer Bathla Group have collapsed, leaving administrators to halt work at 13 construction sites and stand down about 125 workers.
Insolvency adviser Teneo said on Wednesday that Bathla had exhausted the $4.7 million in short-term funding secured after the company entered voluntary administration.
Attempts to obtain longer-term finance from lenders failed, leaving 67 employees to remain in place to assist with the administration. The company had previously stood down more than 200 staff and suspended several construction projects.
Bathla Group turns to asset sales after funding talks fail
The NSW Supreme Court gave administrators a 12-month extension on Friday to complete unfinished projects by September 13, 2027. Without further funding, however, their focus will now move to working with lenders on an orderly sale of Bathla’s subdivision and land-bank sites.
Bathla, one of Sydney’s largest residential developers, entered voluntary administration on August 25 after the NSW Government declined to provide financial assistance.
The group owes $3.4 billion to creditors. That includes $3.08 billion to secured lenders, $130 million to unsecured lenders, $145 million to the tax office and $4 million to employees.
Bathla’s website says the group has 20,000 apartments and 7,000 dwellings in its delivery pipeline.
The pipeline represents a significant share of the NSW Government’s target to deliver 75,400 new homes a year for five years until 2029.
