Bathla Group Gets a 12-Month Stay of Execution From NSW Court
Synopsis
Bathla Group has secured a further 12 months in administration as creditors assess billions in claims and administrators review ongoing projects.
Bathla Group has been granted another 12 months to overcome its financial difficulties as the NSW Supreme Court extended the developer's voluntary administration, until 13 September 2027.
The property group, based in Sydney, entered administration in August following a significant financial issue. The extended administration period provides more time for administrators to explore funding alternatives, project management, and creditor status.
Creditors face $3.4 billion in claims
According to the new data, Bathla Group's creditor claims amount to almost $3.4 billion, with nearly 3,000 creditors. The Australian Taxation Office is owed about $145 million, while secured lenders are owed around $3.08 billion.
The total amount of land tax claims is around $42 million and other unsecured creditors are owed about $130m. Additionally, the administrators have found around $4.9 billion in preliminary property value, however, this does not constitute cash available for creditors.
There are more than 45 projects under construction and around 660 presales at the moment. Administrators have said that it costs the lender anywhere between $1 million to $1.3 million per week to keep the projects in construction.
More than 200 employees were stood down during the administration, and short-term financing of selected operations and projects have been provided.
FY2025 accounts show heavy borrowing
Total liabilities and borrowings of Bathla parent company Universal Property Group were $3.19 billion and $2.85 billion, respectively, in their financial statements for the year ended June 2025.
The sum of short term borrowings was around $1.99 billion. The accounts also included $1.41 billion in residential projects that were in the construction phase, $209.2 million in unsold housing projects that were completed and about $14.5 million in cash.
The construction industry in Australia continues to feel the strain of Bathla's administration. First-time construction business construction insolvencies rose to 868 in August 2026, and the construction businesses' 60+ day payment arrears rate was 6.5% for the month.
The administration extension will give Teneo time to review Bathla's projects and financial situation. The creditors' meeting may also be called before the end of the year, if the administrators think the circumstances require it.
Source: The West Australian
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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