Embattled Sydney property developer Bathla warns it could fold by the end of the week

The embattled Sydney property developer Bathla Group is facing imminent closure, with administrators warning that the company will fold by the end of the week unless they secure additional funding. Insolvency advisory firm Teneo took control of Bathla's operations on August 25 after the Sydney-based construction company went into voluntary administration.

Thousands of customers have been left without homes, many of which are partially built, as Bathla's staff, including 350 head office employees, have gone unpaid for up to eight weeks. Teneo's senior managing director, Stephen Longley, stated that the company lacks the funds to pay wages or suppliers, and unless a solution is found, it will be forced to close.

Some staff have chosen to continue working unpaid until the end of the week in hopes of finding an emergency financial backer, but Teneo plans to conduct a review to determine which employees are essential. In a statement, Bathla acknowledged that Teneo's priority was to stabilize the company's operations and work with lenders to support employees and complete projects.

However, Teneo cannot refund deposits from hopeful homebuyers, as the company has 20,000 apartments and 7,000 dwellings in the pipeline. The administrators are focusing on Bathla's 45 ongoing projects, which are expected to result in 2,000 to 2,500 new homes. Teneo is working to secure support from other lenders, as the New South Wales government declined their request for financial assistance.

Longley remains hopeful that lenders will respond positively in the coming days, allowing Teneo to provide an update on Bathla's future.