Breaking: Bathla creditors' meeting hears company owes $3.4 billion

Bathla creditors' meeting hears company owes $3.4 billion Bathla Group owes known creditors about $3.4 billion, including $3.08 billion to secured lenders, according to preliminary figures presented by administrators at the company's first creditors' meeting. The group also owes about $145 million to the Australian Taxation Office, $42 million in land tax and $130 million to other unsecured creditors. The administrators met payroll on September 3, but said there was insufficient cash to pay wages on an ongoing basis. About 21 employees and subcontractors have been stood down, with the situation expected to be reviewed early next week. The group owes about $4 million in employee wages and superannuation. The figures remain preliminary. Administrators warn construction could halt without loans At the meeting, administrator Teneo warned it may be unable to keep construction going across parts of the business unless fresh funding was secured by Monday morning. Administrators told creditors they were in "positive discussions" with five lenders about funding the central costs needed to support construction. They hope to have agreements in place by the end of today, but have given themselves until Monday morning. If those lenders agree to provide funding, work can continue on their projects. Administrators said they would probably be unable to support construction on sites backed by lenders that do not participate. Keeping construction operating is estimated to cost about $1 million to $1.3 million a week, depending on which projects continue. The problem is that most lenders fund individual projects and have historically not covered Bathla's head-office costs, which were instead funded from equity released from projects. Administrators are now trying to establish a new funding model to allocate those central costs across continuing projects. Employees are also bearing the brunt of the cash shortage. Staff will be briefed on Monday morning on the funding position and which construction sites can keep operating. Loading [Image text:] Bathld bathla.com.au YEARS ESTABLISHED