{"id":897064,"date":"2026-09-18T23:08:14","date_gmt":"2026-09-18T23:08:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/897064\/"},"modified":"2026-09-18T23:08:14","modified_gmt":"2026-09-18T23:08:14","slug":"inside-the-mammoth-task-that-could-keep-bathla-in-administration-for-another-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/897064\/","title":{"rendered":"Inside the mammoth task that could keep Bathla in administration for another year"},"content":{"rendered":"

Administrators of the Bathla Group have been given up to another year to run the voluntary administration, as they try to secure longer-term funding and work through a sprawling portfolio of property projects and creditor claims.<\/p>\n

The NSW Supreme Court on Friday extended the convening period for the administration until September 13, 2027.<\/p>\n

But the order does not mean the administration, or Bathla’s construction operations, are funded for another 12 months.<\/p>\n

Rather, it gives administrators Teneo more time before they are required to convene the second meeting of creditors, where creditors would ultimately be asked to decide the future of the companies.<\/p>\n

\"A<\/p>\n

Administrators are assessing hundreds of Bathla’s individual projects.\u00a0 (ABC News: John Gunn)<\/p>\n

Why administrators sought another year<\/p>\n

The ABC understands the administrators sought the 12-month period because they considered anything shorter inadequate, given the scale of the task ahead.<\/p>\n

That includes assessing hundreds of individual projects, working through the group’s financial records and, ultimately, providing creditors with enough information to make decisions about the future of the companies.<\/p>\n

\u201cWe have taken a cautious approach to the time frame to ensure there is sufficient time to progress and complete projects in an orderly way,\u201d Teneo’s head of financial advisory Stephen Longley said.<\/p>\n

But the ability to keep construction projects moving remains dependent on funding.<\/p>\n

“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.<\/p>\n

“Locking in this funding is therefore an immediate priority and discussions are continuing.”<\/p>\n

\"A<\/p>\n

Bathla Group is on the rocks.\u00a0 (ABC News: John Gunn)<\/p>\n

Longer-term funding still not secured<\/p>\n

Teneo has secured $4.7 million in initial funding and is continuing talks with lenders over longer-term support for active construction projects and the shared costs of keeping Bathla’s operations running.<\/p>\n

Bathla’s messy next chapter <\/a><\/p>\n

Bathla has bought itself time, but not a rescue. Its future is increasingly being decided project by project.\u00a0<\/p>\n

Six lenders are currently providing the initial funding, while discussions are ongoing with other financiers that could potentially join the arrangement.<\/p>\n

The funding talks come as administrators continue to work out the financial position of the group.<\/p>\n

There are about $3.4 billion in currently known consolidated creditor claims.\u00a0<\/p>\n

That includes approximately $3.08 billion claimed by secured lenders and $145 million owed to the Australian Taxation Office.<\/p>\n

It is also understood it includes about $48 million to private lenders and $110 million to other unsecured creditors, subject to ongoing reconciliation.\u00a0<\/p>\n

\"A<\/p>\n

Bathla has been on the brink.\u00a0 (ABC News: John Gunn)<\/p>\n

Untangling Bathla’s financial records<\/p>\n

The ABC understands Teneo’s review to date has found the group’s bank accounts had not been reconciled for some time, while its records may contain about $736 million in overstated inter-company receivables and payables, subject to reconciliation.\u00a0<\/p>\n

Key planning, design and construction information is also understood to be spread across different systems, staff email accounts, network drives and hard-copy records, rather than held in a single central repository, and reviewing these books could take many months.\u00a0<\/p>\n

A preliminary review has identified about 219 current projects carrying approximately $3.13 billion in debt, against a preliminary total value of about $4.87 billion, with figures subject to ongoing review.\u00a0<\/p>\n

Hundreds of properties face different outcomes<\/p>\n

The ABC understands about $400 million worth of completed property is currently for sale or under contract.<\/p>\n

It is expected that sale proceeds would initially be applied against secured lending, with any further amounts available to the individual Bathla companies, dependent on the outcome of those sales.<\/p>\n

Across projects under construction, about a quarter of the lots are already subject to pre-sale contracts, while three-quarters remain available for sale.\u00a0<\/p>\n

It is understood administrators’ preliminary assessment also identified about 167 undeveloped sites forming part of Bathla’s land bank.<\/p>\n

About 30 per cent are expected to be marketed for sale in their existing condition, while the strategy for the remaining 70 per cent is yet to be determined.\u00a0<\/p>\n

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