Bathla races to secure $20m in last-ditch effort to avoid collapse

The clock is ticking for construction giant Bathla, which is seeking an 11th-hour deal as it looks to stave off collapse.

One of NSW’s largest property developers has warned if it cannot secure $20m in emergency funding by the end of the day, the business will shut down.

Bathla administrator Teneo said the cash injection would be used to complete 45 projects under construction and pay staff who have not been paid in eight weeks.

Bathla has been in the construction industry for 25 years, with $15bn in projects currently in the pipeline.

Bathla chief executive Robert Loader last week said he recognised the difficult spot the business was in.

“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 said in a statement.

“The business has been through a period of declining sales and falling property prices, while

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

Teneo head of Australia financial advisory Stephen Longley said the business had started urgent discussions as it looked to maintain construction activity through the process.

“Our priority is to stabilise the business so that construction activity and property settlements can continue in the ordinary course,” he said last week.

“Our objective is to ensure project continuity wherever practicable and work with lenders to minimise disruption for employees, customers and contractors.”

Bathla, which was placed into administration last week owing $3.3bn, said a “perfect storm” hit the business at the wrong time.

In a statement made last week Bathla Group co-founders and brothers Bhart Bhushan and Rajinder Mohan blamed slow sales, falling property prices and changes to property taxes in this year’s federal budget.

“This has coincided with significant increases in construction costs which have been absorbed by the group,” Mr Bhushan said.