{"id":610387,"date":"2026-09-24T15:02:35","date_gmt":"2026-09-24T15:02:35","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/610387\/"},"modified":"2026-09-24T15:02:35","modified_gmt":"2026-09-24T15:02:35","slug":"bathla-reduces-to-skeleton-staff-and-stops-construction-work-as-lenders-pull-out","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/610387\/","title":{"rendered":"Bathla reduces to skeleton staff and stops construction work as lenders pull out"},"content":{"rendered":"

Administrators of failed property developer Bathla have reduced staff down to a “skeleton” and will cease construction work after all but one lender decided not to continue propping up the company.<\/p>\n

Only a core team will be retained to support the ongoing administration, with administrators Teneo working with lenders on the orderly sale of Bathla’s subdivision and land-bank sites.<\/p>\n

The ABC understands 125 employees have been stood down, while 67 employees remain.<\/p>\n

Support for sales and settlements will also cease.<\/p>\n

“Discussions with lenders for further funding have now concluded,” administrators said in a statement.<\/p>\n

\"The<\/p>\n

Administrators say Bathla Group has exhausted all its funding. (ABC News: John Gunn)<\/p>\n

Administrators had initially secured a short-term funding deal from six lenders to continue on 13 of those lenders’ construction projects.<\/p>\n

They said that funding had now been “exhausted”.<\/p>\n

All other construction projects were suspended while 213 staff were stood down at the beginning of September in the wake of the deal.<\/p>\n

“We understand some lenders may want to discuss with us support and assistance for some projects,” administrators said to lenders in correspondence seen by the ABC.<\/p>\n

“While we are happy to assist where we are funded and have the resources available, these discussions will need to wait until next week as we have quite a bit of work to do today and tomorrow to cease operations, secure sites and stand down the workforce.”<\/p>\n

\"A<\/p>\n

Bathla collapsed at the end of August.\u00a0 (ABC News: John Gunn)<\/p>\n

Bathla plunged into administration at the end of August after being unable to pay its $3.4 billion in debts.<\/p>\n

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

Bathla is one of Sydney’s biggest residential property developers, with its administration leaving the fate of 200 projects across NSW in jeopardy, with roughly 2,000 homes under construction and another 13,000 in its development pipeline.<\/p>\n

The ABC reported over the weekend<\/a> that it was understood that Teneo’s review found the group’s bank accounts had not been reconciled for some time.<\/p>\n

Its records may contain about $736 million in overstated inter-company receivables and payables, subject to reconciliation, the ABC understands.<\/p>\n

A preliminary review 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.<\/p>\n

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

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