Source : Perth Now news
An embattled developer has received a reprieve in the form of a 12-month extension to finalise its existing construction projects.
Insolvency advisor Teneo says the Supreme Court of NSW has granted Bathla an extension of the convening period for voluntary administration until September 13, 2027.
The developer stood down more than 200 staff and halted a number of construction projects earlier in September after it entered voluntary administration on August 25.
Bathla owes $3.4 billion to creditors, including $3.08 billion to secured lenders, $130 million to unsecured lenders, $145 million to the tax office and $4 million to employees.
Teneo’s head of financial advisory Stephen Longley said the 12-month extension reflected the scale of Bathla’s portfolio and the varying stages of completion across its projects.
There are almost 220 current projects with a total value of $4.87 billion and $3.13 billion in debt against them.
Roughly 660 lots are already subject to pre-sale contracts, while 1974 lots remain available to buy.
“We have taken a cautious approach to the time frame to ensure there is sufficient time to progress and complete projects in an orderly way,” Mr Longley said.
He also noted the extension afforded Teneo time to secure the additional funding needed to maintain operations.
Administrators have already secured $4.7 million in additional funding from six lenders, and are continuing discussions on longer-term funding arrangements.
“The extension gives us the time needed to progress projects towards completion, but that outcome remains dependent on securing further lender support to maintain critical central functions at Bathla,” Mr Longley said
“Locking in this funding is therefore an immediate priority and discussions are continuing.”
In addition to securing financing to complete unfinished construction projects, administrators need to reconcile about $736 million of intercompany receivables and payables as Bathla’s bank accounts had not been reconciled for some time.
NSW Premier Chris Minns has defended his decision not to spend public money bailing out the Sydney-based developer, noting Bathla’s corporate structure was unusual and reliant on debt from private lenders.
“I can’t just hand money over to an administrator, particularly when the finances of this particular firm are so opaque and difficult to decipher,” Mr Minns said earlier in September.
