Breaking: Lenders pull out of Bathla group as construction work halts across sites
Building work has stopped at sites and company is down to skeleton staff.
The administrators of the failed property developer Bathla have announced the cessation of construction work across all sites, as well as the reduction of staff to a skeleton crew. Only one lender has remained committed to propping up the company, with the remaining 13 lenders deciding not to continue funding. Administrators Teneo are now working with the lenders to facilitate the orderly sale of Bathla's subdivision and land-bank sites.
Support for sales and settlements will also be suspended. Discussions with lenders for further funding have concluded, with administrators stating that the initial short-term funding deal from six lenders has now been exhausted. All other construction projects have been suspended, and a core team will be retained to support the ongoing administration.
Initially, Bathla employed around 350 staff, but 213 were stood down at the beginning of September following the deal. Administrators have indicated that they are open to discussions with lenders regarding support and assistance for certain projects, but these discussions will need to wait until next week as they focus on ceasing operations, securing sites, and standing down the workforce.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
