Court extends Bathla administration
Bathla Group’s administration has been extended for another 12 months, giving administrator Teneo more time to work through the collapsed developer’s portfolio and determine which projects can be completed.
The NSW Supreme Court made the order today, pushing the second creditors’ meeting into 2027.
Teneo senior managing director Stephen Longley said the decision reflected the complexity of the administration.
It also allows projects to be progressed and completed in an orderly way, according to the executive.
“We have taken a cautious approach to the time frame to ensure there is sufficient time to progress and complete projects in an orderly way,” he added.
“The extension gives us the time needed to progress projects towards completion, but that outcome remains dependent on securing further lender support to maintain critical central functions at Bathla.”
Funding an immediate issue
As realestatesource.com.au reported this week, Teneo has secured short-term support from five lenders to keep a reduced operation running, but the administrators are still seeking further funding.
However, about 235 of Bathla’s 350 staff have been stood down and construction has continued only on projects backed by lenders participating in the funding package.
The extension comes as the administrators confront a business spread across hundreds of companies, more than 200 development sites and dozens of lenders.
Bathla entered voluntary administration in August after running into severe cashflow pressure.
At its first creditors’ meeting on September 4, Teneo reported known debts of about $3.4 billion.
The administrators put the preliminary stated value of Bathla’s 219 sites at about $4.9b, but stressed that this was not cash available to meet the group’s debts (continues below).
Much of the value is tied up in land and partly completed developments, with individual projects generally financed by separate lenders.
$1m-plus a week to run
Teneo estimated that keeping construction operating costs about $1 million-$1.3m a week, depending on the projects being supported.
It added that much of the property is subject to project-level financing and any sale proceeds are likely to flow to the relevant lender rather than provide cash for the wider group.
The administration has already seen lenders begin taking control of individual projects – Bob Ell and PAG amongst them.
Several have appointed receivers or otherwise moved to protect their security, while other lenders have agreed to provide temporary funding to keep selected developments moving.
Deal fell over
A proposed refinancing of about 25 land-only sites, with a reported value of around $1b, also fell away this week after Renown Wealth withdrew from the proposed deal.
Renown said it could not agree key conditions, including the proposed corporate structure and fresh valuations, and raised concerns about the continued involvement of Bathla founder Bhart Bhushan.
The longer administration period gives Teneo more time to assess the group’s projects, negotiate with lenders and pursue outcomes for individual developments before creditors are asked to determine the next step.
Mr Longley said the extension was dependent on securing further lender support to maintain Bathla’s central functions, with those discussions continuing.
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