'Devastating blow' as Bathla Group seeks $20m to keep building for five weeks
Administrators of Bathla Group are seeking about $20 million to keep the developer operating and construction moving for the next five weeks.
Former NSW planning minister Frank Sartor was involved in early meetings that eventually led to Teneo Financial Advisory Australia agreeing to become voluntary administrators for Bathla Group.
Administrators of collapsed property developer Bathla Group are seeking about $20 million to keep construction going for the next five weeks, as home buyers and contractors wait to find out what happens to unfinished projects and unpaid bills.
About 2,000 homes are under construction across the group, and about 13,000 more are in its development pipeline.
Bathla is one of Sydney's most prolific residential developers, particularly across the city's west.
A meeting was held on Tuesday night between administrators Teneo Financial Advisory Australia (Teneo) and the representatives of 43 lenders to discuss Bathla Group's future.
In that call, the administrators said the business required $20 million to sustain the next five weeks of building activity.
A customer of the developer, Casey, who previously spoke to ABC News under the pseudonym "Kate", has now agreed to be identified by her real name and appear on camera.
She bought an off-the-plan freestanding house at Lochinvar, in regional New South Wales, for $709,990 in the middle of last year, hoping it would become a secure home for herself and her two young daughters.
She had previously been told the house would be ready by June, then August, before the expected completion was pushed back to the end of this year, and she really hopes to be in her new home by Christmas.
Construction company Delta Foundations said it was owed close to $400,000 for construction work carried out across several Bathla developments in the past 12 months.
The firm's lawyer, Tony Taouk, said the money covered work, labour, materials and payments to other suppliers and contractors.
Mr Taouk said repeated attempts had been made to resolve the debt before Delta prepared to take legal action.
"We had gone beyond threatening legal action. A statement of claim was prepared," he said.
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