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Bathla Group

Bathla Group is in administration. Where to from here?

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This is voluntary administration, not liquidation. Some people affected need to act now to protect a right. Others are better off lodging a claim and waiting — and saving the legal cost.

We will tell you which of those you are.

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Two entities.

Universal Property Group, the group’s main corporate entity, and Raj & Jai Construction. Other Bathla entities may not be in administration — including, possibly, the one named in your contract.

Enforcement is restricted.

Administration restricts court proceedings and enforcement action against the companies. A judgment for money may achieve very little if you remain an ordinary unsecured creditor.

Three possible outcomes.

Return to the directors, a deed of company arrangement, or liquidation. The administrators have said their priority is to keep construction and settlements going where practicable.

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The question that matters now

Not whether you have a claim. Whether acting now improves your position.

You may well have a claim. The more useful question is whether you hold a right that should be protected or exercised now, or whether you are an unsecured creditor who should quantify the claim, lodge it and wait for the administration to unfold.

Path one

Some people need to act now.

If you hold security, ownership, proprietary, insurance or third-party rights — or a contractual deadline is running — those rights may sit outside the unsecured creditor pool and may be lost or weakened by delay.

See the rights that need attention now
Path two

Others are better off waiting.

If your position is only a claim for money — unpaid invoices, progress claims, delay damages, rectification costs, a refund — litigation during the administration may cost you money without improving your recovery.

See what to do instead
Find your position
Which of these describes you?

First, identify the company you actually contracted with.

The Bathla Group operates through a complex corporate structure. Entities within the group entering administration does not necessarily mean the particular company named in your contract is in administration.

Word of caution: do not assume that terminating your contract or refusing to complete is the right response. Acting prematurely can affect rights that would otherwise have been valuable.

We can review your contract and circumstances and tell you whether there is something useful you should be doing now.

You may need to take active steps now if :
  • Your contracting entity is not in administration.
  • Your deposit or other money is held by a stakeholder or on trust.
  • A sunset date or other contractual deadline is approaching.
  • You may have a right to rescind or terminate the contract.
  • You have rights under a bank guarantee or other security.
  • Home Building Compensation Fund cover exists and work is incomplete or defective.
  • An insurance notification or claim should be made to preserve your position.
  • You have an interest in the property which may require protection.
  • Construction has stopped and arrangements are needed for incomplete or defective work.
  • You may have claims against another company, insurer, consultant or certifier.

If you are simply owed money, litigation may not improve your position.

The same distinction applies to contractors, subcontractors, suppliers and consultants. Money owed for work already performed or goods already supplied is usually an unsecured claim.

You should obtain advice promptly if you may have rights that give you something more than an ordinary unsecured claim.

Important note: if the administrators ask you to keep working or supplying, the terms on which that work will be undertaken and paid for should be established clearly, in writing, first.

Get advice promptly if you may have:
  • Registered or unregistered security interests.
  • PPSR registrations.
  • Retention-of-title rights.
  • Goods, plant or equipment you own sitting on a Bathla site.
  • Retention monies which may be subject to trust or other protections.
  • Claims against another Bathla entity which is not in administration.
  • Rights of set-off.
  • Time-sensitive Security of Payment or contractual rights.

Quantify it, lodge it, preserve it, wait.

If your only claim is for unpaid invoices, progress claims, variations or contractual damages against a company in administration, the practical course is much simpler than litigation.

In some cases that is all that is commercially justified for the time being. We will say so rather than open a file.

Five steps, in order :
  1. Identify the correct debtor company.
  2. Calculate the amount of your claim.
  3. Gather the contract, invoices, payment claims and correspondence.
  4. Lodge details of the debt with the administrators when required.
  5. Monitor the administration and await the administrators’ report.
When you may need to act now

Four kinds of right sit outside the unsecured creditor pool.

These rights may provide a recovery or a protection that ordinary creditors do not have. They need to be considered separately from a claim for money — and some of them are time-limited.

Security and ownership

  • A security interest or PPSR registration.
  • Ownership or retention-of-title rights over goods, materials or equipment.
  • An interest in land or another proprietary right requiring protection.

Money held by someone else

  • Retention monies or money held on trust.
  • A deposit or other money held by a stakeholder or third party.
  • Rights of set-off against amounts you owe.

Solvent third parties

  • Rights against a Bathla entity that is not in administration.
  • A bank guarantee, parent company guarantee or other third-party security.
  • Rights against an insurer, or Home Building Compensation Fund cover.
  • Rights against directors, guarantors, consultants or certifiers.

Rights with a clock running

  • Security of Payment and other statutory time limits.
  • Sunset dates, rescission and termination windows.
  • Any right where delay may prejudice your position.
Understanding the process

Administration is not liquidation.

Voluntary administration gives a financially distressed company breathing space while an independent administrator investigates its affairs and creditors determine its future.

Until more is known, it may be premature to assume either that a project will not be completed or that contracts should be terminated and proceedings commenced.

The administration may end in one of three ways.

  1. The company returns to its directors.
    Control reverts and trading continues in the ordinary course.
  2. A Deed of Company Arrangement (DOCA).
    Creditors accept a compromise, often paying a proportion of claims over time.
  3. The company proceeds to liquidation.
    Assets are realised and distributed. Unsecured creditors rank last.
Our service

An initial assessment, then one of three answers.

Our Building & Construction and insolvency lawyers act for homeowners, purchasers, contractors, suppliers and consultants affected by the Bathla Group administration. We do not recommend commencing proceedings or incurring significant legal costs simply because a claim exists.

1

You have a right that should be protected or exercised now.

2

You have a claim to notify or lodge, but little benefit in taking further action yet.

3

There is nothing to do now other than preserve your documents and wait.

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The assessment covers:

The entity you contracted with, and whether it is affected by the administration.

Your contract, and any termination, rescission or sunset rights.

Whether you hold security, proprietary or third-party rights.

HBCF and other insurance issues.

PPSR, retention-of-title and retention issues.

The nature and value of any unsecured claim.

Whether any practical step is worth taking immediately.

Who You Will Speak To

Our building and construction partners.

Nelson Arias-Alvarez

Nelson Arias-Alvarez

Partner

Building & Construction

Anthony Herron - Building and Litigation Lawyer

Anthony Herron

Associate Partner

Building & Construction

Expert Building Advice

Our team can assist with any type of building and construction matter.

Extensive experience across construction, property, insolvency and commercial litigation, from 14 offices in NSW, VIC, SA and QLD.

Read more about our building team
Contact Us

Tell us your position. We will tell you whether to act now or wait.

Send us your contract or the entity name and we will identify who you contracted with, whether that entity is in administration, and whether anything needs to be done immediately.

Speak to Someone Today
1300 907 335

Sydney · Melbourne · Brisbane · Adelaide — 14 offices across NSW, VIC, QLD and SA.

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