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Watchdog issues stop orders aginst Bathla lender
One of the lenders to collapsed property developer Bathla has been hit with interim stop orders over concerns it did not declare its exposure.
- Australia’s financial watchdog has issued interim stop orders against two funds it alleges do not adequately inform customers of their exposure to insolvent property developer, the Bathla Group.
- The stop orders prevent Angas Securities from offering, issuing, selling, or transferring interests in two of its funds.
- The Bathla Group collapsed in August, owing approximately $3.4 billion and leaving hundreds of large-scale construction projects in limbo.
Australia’s financial watchdog has issued stop orders against a fund manager who it says failed to inform investors of its exposure to insolvent property developer, the Bathla Group.
The Australian Securities and Investments Commission (ASIC) today issued interim stop orders preventing Angas Securities Limited from offering interests in two managed investment schemes.
It said it had “concerns the funds’ product disclosure statements do not adequately disclose Angas Securities’ financial position and one fund’s exposure to the Bathla Group.”
The stop orders prevent Angas Securities from offering, issuing, selling, or transferring interests in two of its funds.
ASIC Commissioner Simone Constant said the message the commission was sending to fund managers was “crystal clear.”
“Investors need clear and timely information about the risks they are taking on, particularly when circumstances change and private credit loans run into difficulty,” Constant said.
“The collapse of the Bathla Group has highlighted the risks that can emerge in private credit when this message is ignored.
“The Bathla collapse drives home the importance of strong governance, appropriate valuations and clear disclosure to private credit investors.”
Angas Securities holds approximately $114 million in investor funds, comprising $78.6 million in the Angas Direct Mortgage Fund and $35.1 million in the Angas Prime Income Fund.
The current stop orders are interim only, and ASIC will decide whether they become formal after Angas Securities is given a chance to be heard.
The Money Edition has contacted Angas Securities for comment.
Constant said ASIC was working to understand how exposed retail investors were to the collapse of Bathla.
“ASIC is engaging closely with voluntary administrators to trace the $3.2 billion in funds loaned to Bathla and making a range of inquiries focused on taking further action as appropriate,” she said.
“One of our main concerns is to understand the extent to which there are retail investors affected.
“ASIC will continue its broader scrutiny of private credit and will continue to step up our actions.
“We will act swiftly where we are concerned investors are not being given the full picture about the risks they face.”
The Bathla Group collapsed in August, owing an estimated $3.4 billion to creditors.
By late September, administrators Teneo were forced to shut down Bathla’s estimated 220 construction projects after it failed to find funds to keep the builds afloat.
Teneo have been granted an extension until September 2027 to investigate Bathla’s lines of credit and its many subsidiaries.
Most of Bathla’s staff have been stood down and are owed millions in entitlements.