Source : Perth Now news
Talks to secure a funding lifeline for a major property developer have fallen through, as administrators lay off more than 100 workers.
Insolvency advisory Teneo announced on Wednesday property developer Bathla Group had run out of cash after securing $4.7 million in short-term funding.
It left the administrators little choice but to halt work at 13 construction sites, after discussions with lenders for longer-term funding failed to yield results.
It is understood about 125 workers have been stood down, with only 67 employees retained to help continue the administration.
Administrators were given a 12-month reprieve by the NSW Supreme Court on Friday to complete unfinished projects by September 13, 2027.
Without funding, however, the focus will now switch to working with lenders for an orderly sale of Bathla Group’s subdivision and land bank sites.
The company, one of Sydney’s largest residential developers, entered voluntary administration in late August after the NSW government declined to bail it out.
It 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.
According to Bathla’s website, the group 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.
