Source : Perth Now news
Hundreds of workers are being stood down at collapsed housing developer Bathla Group.
At least 200 staff have been affected while administrators try to sort a rescue plan to enable the business to continue operation.
Bathla said in a statement on Monday it had reached a short-term funding agreement with five lenders to enable limited operations to continue for a further two weeks.
However, 213 staff have been stood down and construction on other projects will be suspended.
“Our immediate priority has been to secure sufficient short-term funding to maintain a minimum viable operating structure,” administrator Stephen Longley said in a statement.
Last week Bathla administrators Teneo warned the developer risked a shut down as cash reserves ran critically short.
Bathla, which has 45 construction sites with 2500 partially built apartments in Sydney, collapsed in August with debts of $3.4bn.
Teneo administrators said Bathla needs $20m to continue operations over the coming four weeks to pay the company’s 350 workers and finish off projects as the business looks for a way out of its $3.3bn debt obligation.
On Friday, the first meeting of creditors was held and administrator Stephen Longley saying negotiations with construction lenders would continue over the weekend “with the goal of securing funding by Monday”.
All staff were called to a meeting on Monday to update them on talks with prospective lenders.
More to come
