Embattled developer stands down hundreds of workers
More than 200 staff at the Bathla Group have been stood down as administrator's seek more funding. Photo: AAP
Embattled property developer Bathla has stood down hundreds of staff and halted construction on projects as it clings to life while owing billions of dollars.
About 213 of Bathla’s 350 staff were officially stood down at a meeting in Sydney on Monday morning.
But administrators said they had secured short-term funding to keep some of the firm’s projects going.
Insolvency advisor Teneo announced it had secured the funding through five lenders linked to the projects, although the amounts and participants were kept confidential.
Administrator Stephen Longley said the funding would enable Bathla Group to maintain limited operations for two more weeks while longer-term solutions were explored.
“Our immediate priority has been to secure sufficient short-term funding to maintain a minimum viable operating structure,” he said.
“The arrangements agreed allow us to provide the central support required for construction to continue on projects associated with the lenders participating in the funding package.
“Significant work remains to secure the funding required to progress and ultimately complete all projects currently under construction. We will continue to work closely with lenders and other key stakeholders to pursue those arrangements.”
Figures presented to creditors put Bathla’s total debt at $3.4 billion, including $3.08 billion to secured lenders, $130 million to unsecured lenders, $145 million to the tax office and $4 million to employees.
Bathla is one of Sydney’s largest residential developers and has 45 projects under construction.
The home developer went into voluntary administration two weeks ago after the NSW government declined to bail it out.
According to the company’s website, Bathla has 20,000 apartments and 7000 dwellings in its delivery pipeline, comprising a significant share of the NSW government’s target of 75,400 new homes a year for five years until 2029.
Homebuyers who bought off-the-plan have been left in the dark, uncertain when, or if, their properties will be completed, while contractors have been left scrambling to recoup debts.
Founded in NSW in 1997, Bathla is among a long list of Australian home developers that have recently entered voluntary administration or liquidation.
-AAP
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