Sydney developer Bathla could collapse by end of week, administrators warn

Sydney-based property developer Bathla Group is facing collapse within days unless emergency funding can be secured, according to the administrators now overseeing its operations.

Insolvency firm Teneo took control of Bathla on 25 August after the construction company entered voluntary administration. The move has left thousands of customers uncertain about the fate of their homes, many of which remain only partially built.

Teneo senior managing director Stephen Longley said on Monday that some of Bathla's 350 head-office staff had gone unpaid for eight weeks. He said the company currently has no cash available to cover either wages or supplier payments, and that closing the business would be the only option if the situation cannot be resolved.

Some employees have chosen to keep working without pay until the end of the week, hoping an emergency backer can still be found. Longley also warned of possible job losses even if Bathla survives, noting Teneo is reviewing all 350 staff to identify which roles are essential to keep the business running.

In its notice announcing the move into administration, Bathla said Teneo's immediate focus was to stabilise operations and work with lenders to support staff and keep projects moving. Teneo said it is currently unable to refund deposits paid by prospective buyers, with the company's website listing 20,000 apartments and 7,000 dwellings in its pipeline.

Longley said priority would go to the 45 projects already under construction, expected to deliver between 2,000 and 2,500 new homes. Teneo is continuing to seek support from other lenders after the New South Wales government turned down a request for financial assistance. Longley said an update on Bathla's future would come after a meeting with potential creditors on Friday, adding that the response from lenders so far had been positive.