Troubled Australian developer Bathla granted one-year extension to complete projects
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FILE PHOTO: Cranes work above an apartment tower under construction in Sydney August 2, 2011. REUTERS/Tim Wimborne/File Photo
SYDNEY, Sept 18 (Reuters) - Debt-riddled Australian developer Bathla Group received a one-year extension on Friday to complete unfinished projects that were left in limbo when it entered administration last month.
But the company would still be dependent on securing further funding from lenders, administrators Teneo Australia said.
Teneo took control of Bathla, one of Australia's most prolific affordable housing developers, which operates mainly in Sydney's western suburbs, last month to manage an A$3.4 billion ($2.42 billion) debt pile.
On Friday, Teneo said the Supreme Court of New South Wales granted an extension of its administration of Bathla until September 13, 2027.
Administrators usually have less than one month to conduct their investigations into a company's finances and prepare a report for creditors on their options, including either a restructuring or liquidation.
Administrator Stephen Longley said in a statement the length of time granted reflected the scale of the company's construction projects.
"The extension gives us the time needed to progress projects towards completion," he said.
The extension does not guarantee a 12-month reprieve from liquidation, with administrators able to call a second creditors' meeting before the window ends.
The completion of projects would also be dependent on securing further funds from lenders, Longley said. "Locking in this funding is therefore an immediate priority and discussions are continuing."
More than 200 of Bathla's 350 staff were stood down last week, while Teneo secured two weeks of short-term funding to allow some construction projects to continue.
Bathla, founded in 1997, said on its website it has 22,000 apartments and 3,500 homes under development.
Documents lodged with Australia's corporate regulator showed the group had 45 unfinished sites when it entered administration.
($1 = 1.4039 Australian dollars)
(Reporting by Christine Chen in Sydney; Editing by Christian Schmollinger)
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