Troubled Australian developer Bathla halts construction after lender funds dry up

Australian developer Bathla Group ​on Thursday halted all ​remaining operations and "stood down" its ‌workers after ​exhausting short-term lender funding it sourced after collapsing into administration last month. Bathla, one ‌of Australia's most prolific affordable housing developers, entered administration owing A$3.4 billion ($2.4 billion) in debt and leaving thousands of homes under construction in ‌limbo.

Teneo Australia, the administrators for the group, on September 7 secured ‌two weeks of short-term funding from lenders to allow some construction projects to continue. It also "stood down" more than 200 staff in a bid to ⁠avert liquidation.

During ​a stand-down, ⁠employees remain employed but the employer is not required to pay them. In an ⁠update on Thursday, Teneo said the short-term funding had been exhausted and ​discussions with lenders for further funding had ended.

"As a result, ⁠construction workers across 13 Bathla sites have been stood down and all ⁠construction ​operations have ceased," the statement said. Teneo said the focus was now on working with lenders to sell Bathla's subdivision and ⁠land bank sites.

Court documents showed Bathla had 219 projects underway when administrators ⁠were appointed. ⁠These included 45 sites under construction, which accounted for a "significant" portion of the company's debt. ($1 = 1.4209 Australian ‌dollars)