source : the age
Administrators for collapsed major Sydney developer Bathla Group have revealed the company’s mounting costs, as it continues to secure short-term funding to allow it to operate for a few more weeks.
Preliminary figures provided at the first creditors meeting on Friday show Bathla owes creditors $3.4 billion, including $3.08 billion to lenders, $145 million to the Australian Tax Office, $130 million to other unsecured creditors and $42 million in land tax. Debts will “go up and down as time goes on”, administrator Teneo said.
Creditors were told that “positive discussions” were continuing with five of the company’s 43 lenders, but Teneo also warned construction would stop on the company’s projects if funding is not secured by Monday.
Bathla Group – and its 542 individual entities – entered into voluntary administration last week. For the past few days, Teneo has been desperately negotiating with lenders to secure short-term funding to stave off liquidation.
“The group, as I said, from day one, has had literally no cash,” Teneo’s Andrew Scott said on Friday.
“So we’ve been really focused on raising liquidity to provide short-term funding to obtain immediate funding to pay things like wages and other critical operating expenses.”
The company owes $4 million to its employees. Teneo said on Thursday it would provide Bathla’s staff with a partial payment, covering wages accrued from when administrators were appointed.
The company’s 300-plus staff had not been paid for eight weeks, the administrator said on Monday. Due to cashflow restraints, 21 employees and subcontractors have been stood down.
Bathla has 45 projects under construction in NSW set to deliver about 2500 homes, but administrators said the developer also has a significant land bank holding, at various stages of development.
“Based on our investigations to date, we believe there is around $400 million of stock that is currently for sale or under contract. However, we also understand that there will be no liquidity flowing to the group from this stock in the near term,” Teneo’s Rebecca Gill said.
A meeting with staff has been scheduled for Monday morning to provide an update on funding and on which sites construction can continue.
More to come
Ellie Busby is a Parramatta reporter at The Sydney Morning Herald.Connect via X or email.
