Debt-ridden property firm Bathla may collapse this week, says administrator
The administrators of Bathla Group warn the business might not survive until the end of the week.
Bathla Group, a major property developer, may be forced to close this week, according to administrators. The company's 350 employees have gone unpaid for eight weeks, as administrators Teneo warned in a press conference. Senior managing director Stephen Longley stated that the business lacks the funds to pay staff and suppliers on Thursday.
With no cash available, administrators have no choice but to shut down the company unless urgent funding is secured. Bathla's debts total $3.2 billion, leading to its appointment of administrators last Tuesday. Administrators have requested a $20 million cash injection to keep the business operational, but the NSW government has not provided assistance.
Teneo has borrowed $1 million from its own head office to cover expenses such as vehicle registrations, petrol, and to keep the lights on, but this is not a sustainable solution.
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