Debt-laden Australian property developer Bathla Group has secured enough funding to meet at least part of its payroll obligations, but administrators say its immediate survival remains uncertain as negotiations with lenders continue.
The last-minute support was confirmed on Thursday, 3 September, as Teneo worked to prevent the Sydney-based developer from running out of cash. The company entered voluntary administration in August with debts reported at about A$3.3 billion.
Two sources familiar with the negotiations told the ABC that some funding had been secured for staff payments due that day. However, the arrangement falls short of securing Bathla’s longer-term future, with discussions continuing over a broader short-term funding package.
Bathla Group survival still hangs in the balance
Teneo had been seeking about A$20 million to keep the business operating for roughly five weeks, allowing administrators to assess its projects and maintain construction activity. The money would also help protect the jobs of about 350 employees, some of whom had reportedly gone weeks without being paid.
Bathla has about 45 projects under construction, alongside a much larger pipeline of planned homes and apartments. Administrators have warned that without further support the group could still be wound up, leaving buyers, contractors and suppliers facing continued uncertainty.
The New South Wales government has declined to provide emergency funding, leaving the developer’s lenders as the main potential source of further financial support.
Bathla’s first formal creditors’ meeting is due to take place on Friday, 4 September. The meeting will provide creditors with an update on the administration, although it is not expected to immediately resolve the fate of the wider group.
The company’s collapse has placed thousands of prospective homeowners and construction businesses under pressure. Administrators have said projects will be assessed individually, with priority likely to be given to developments where work can be completed and funding secured.
