Bathla Group faces complete shutdown under $3.4B debt
- Bathla Group faces complete shutdown as short-term construction funding expires.
- The collapse leaves 2,500 incomplete homes and 14,000 pipeline properties in limbo.
- Administrators will sell off land assets after failing to secure a long-term rescue deal.
Bathla Group will close its operations and stand down its remaining workforce after short-term emergency funding expired.
The property developer collapsed into voluntary administration in August with $3.4 billion in total debt.
"Teneo administrator Stephen Longley said the firm was now working with lenders on an orderly sale of Bathla Group’s subdivision and land bank sites," stated the voluntary administrator.
The decision halts work across 45 Western Sydney construction sites and stands down the remaining 150 staff members.
The developer's collapse leaves approximately 1,000 home deposits in limbo.
Major Australian banks had blacklisted the developer nearly two decades ago over controversial lending practices involving vulnerable buyers.
Rising material costs and widespread trade shortages continue to push Australian construction companies into insolvency.
