Bathla administrators “quietly confident” a rescue plan can be agreed in days | The Business

“Complex and messy”, is how administrators are describing Bathla Group’s financial arrangements, as they try to stave off the collapse of the NSW major developer with debts totalling more than $3 billion.

While they’ve warned that the business does not have enough money to survive until the end of this week unless it secures an urgent injection of funding to pay staff, the administrator Teneo is extending a glimmer of hope to home buyers that they will eventually receive their keys.

Teneo’s senior managing director, Stephen Longley says the strategy involves a two-step funding process. The first round of funding will secure what is needed to complete Bathla’s projects. The second round will fund the projects themselves.

The administrator says most of the 45 projects, which are currently under construction should be completed by February or March next year, and see around 2,500 new homes added to supply.

However, he says the challenge with completing the projects will be paying the tradies, staff, suppliers and subcontractors, which haven’t been paid in up to eight weeks.

“So whilst we might be 90 per cent through a project, it’s not going to cost us 10 per cent to complete it, because some of those subcontractors, understandably, won’t come back on the site until they’re paid on that project. They might not even come back on that site until they’ve paid all the arrears from all the projects they’re working on for Bathla,” he said.

As for what the collapse and possible rescue deal could mean for Western Sydney’s property market, Mr Longley says Teneo is in discussions with lenders about the need for a co-ordinated approach to bring properties to market.

“If all of the stock came to the market at the one time, I think that would have a pretty significant impact on property values, not just for Bathla’s properties, but properties more broadly,” he said.
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