Major NSW developer Bathla Group plunges into administration owing $3.2bn

Workers at a major property developer have been stood down after the firm plunged into administration owing millions.

NSW-based The Bathla Group called in administrators earlier this week after failing to repay debts of $3.2m.

It has left its workers in limbo after administrators stood them down and the NSW government knocked back a bid for financial support.

In a notice published on the company’s website, CEO Robert Loader defended the decision to appoint administrators.

“We recognise this is a difficult situation, which is why we have taken a proactive decision to appoint voluntary administrators as it is in the best interest of all stakeholders,” he wrote.

“The business has been through a period of declining sales and falling property prices, while construction costs have increase.

“We will work constructively with administrators to support the continued delivery of much-needed housing for Western Sydney.”

The firm has appointed Stephen Longley, Rebecca Gill, Daniel Walley, Adam Colley and Andy Scott from Teneo as administrators, who have assumed control of the company.

“The administrator’s immediate priority is to stabilise the group’s operations and work with lenders, and other key stakeholders to support employees and the continued delivery of projects,” a Teneo spokesman wrote in the company’s administration notice.

“Teneo has commenced urgent discussions with the group’s lenders to maintain construction activity and support the ongoing operation of the business during the administration process.”

Addressing the firm’s financial position on Saturday, Premier Chris Minns said more information would be needed before any support could be offered.

“We don’t have anywhere near a clear enough view for a very complicated financial set of arrangements to provide public money,” he said.

“It is not my money, it is the taxpayers’ of New South Wales, and I can’t commit it lightly.

“I understand the administrator has got a job to do, but we can’t react to 12 or 24-hour deadlines for tens of millions of dollars – that’s not what we do.