Developer Bathla Group may close without urgent funding — ABC News Australia
Australian development company Bathla Group may cease operations by the end of the week if it does not urgently secure funds to pay employee wages. This was reported by ABC News Australia, citing the company’s administrators from Teneo.
Wages have not been paid for eight weeks
According to the administrators, 350 Bathla Group employees have not received wages for eight weeks. Teneo Senior Managing Director Stephen Longley said the company would not be able to survive until the end of the week without funds to pay wages on Thursday. According to him, the business also has no money to settle accounts with suppliers.
Longley noted that if the financial situation is not resolved, the administrators will have no option other than to close the business.
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Debts exceeded $3.2 billion
Administrators were appointed last Tuesday after Bathla Group was unable to repay debts exceeding $3.2 billion. To continue the company’s operations, the administrators requested $20 million in funding.
The government of the Australian state of New South Wales refused to provide financial support. At the same time, Teneo lent Bathla Group $1 million from its head office so that the company could pay for vehicle registration, fuel and ongoing expenses, but the administrators stressed that this was insufficient for long-term operations.
