Sydney-based property developer Bathla Group is at risk of collapsing by the end of the week unless its administrators can secure urgent additional funding. Insolvency advisory Teneo took control of Bathla's operations on 25 August after the company entered voluntary administration.
Stephen Longley, Teneo's senior managing director, stated on Monday that there is no cash available to pay wages or suppliers. He confirmed that some of Bathla's 350 head office staff have not received payment for eight weeks.
Thousands of customers, many with partially-built homes, have been impacted. Teneo is not in a position to refund deposits paid by hopeful homebuyers. The administrators are prioritising 45 projects currently under construction, which are expected to result in between 2,000 and 2,500 new homes.
Teneo is working to secure backing from other lenders after the New South Wales government rejected a request for financial assistance. Mr Longley expressed hope that a solution could be found within the next few days.