Bathla enters voluntary administration
Bathla Group has entered voluntary administration, with restructuring firm Teneo appointed to several key entities as the Sydney residential developer grapples with billions of dollars in liabilities.
The administration affects Universal Property Group, Bathla’s main corporate entity, and Raj & Jai Construction, among other related companies.
Universal Property Group reported $3.2 billion in liabilities at June 30 last year, according to ASIC filings.
Bathla founder and managing director Bhart Bhushan attributed the decision to what he described as a “perfect storm”, including softer sales, changes arising from the federal government’s May budget and higher construction costs.
Teneo said its immediate focus was stabilising operations and working with lenders and other stakeholders to support construction activity and project delivery.
Wind up an option
Established in western Sydney in 1997, Bathla expanded into regional NSW, South Australia and Victoria; its pipeline includes more than 22,000 apartments and 5,000 homes (continues below).
The administration comes after months of reporting around Bathla’s exposure to private credit and funding pressures, the group’s lenders include a number of major private-credit and real estate investors.
The highest-profile is arguably Centuria Bass.
Creditors will ultimately be able to decide whether the businesses return to directors or enter a deed of company arrangement.
It could also be wound up.
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