Bathla workers face uncertain repayments as ASIC investigates collapse

Employee priority may not translate into recovered wages, while temporary visa holders face an additional threat to their future in Australia.

Channel: ABC News (Australia) ·

AustraliaStory of November 11, 2026Trari Newsroom

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Collapsed property developer Bathla under investigation by ASIC | The Business | ABC NEWS

Things we can learn from the video

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0:20Around 200 former staff seek answers over unpaid wages and entitlements, with personnel-related claims estimated at A$6 million.
0:58Temporary visa holders face losing employer sponsorship as well as unpaid income.
1:38ASIC is investigating Bathla and examining private lenders; the specific conduct under investigation has not been disclosed.
2:08Jason Harris explains why employee priority may offer little protection when recoverable assets are limited.
2:30Teneo says post-appointment wages were paid, but earlier claims face a wait of at least six to twelve months.

Former Bathla employees have priority over ordinary unsecured creditors for certain unpaid entitlements. But that does not mean there will be enough money to pay them.

That distinction runs through business reporter Lin Lin's report for the Australian Broadcasting Corporation (ABC), Australia's public broadcaster, as workers seek answers following the Sydney property developer's collapse.

ABC reports that the Australian Securities and Investments Commission, the corporate regulator known as ASIC, has launched a formal investigation into Bathla Group. The regulator has not disclosed the specific conduct under investigation. It is also examining private lenders involved with the group, including how money was raised and whether retail investors face losses.

Bathla entered voluntary administration in August owing creditors at least A$3.4 billion, according to the report. Its sprawling structure comprises more than 500 companies, and its collapse has left unfinished homes and a substantial development pipeline in doubt.

Outside the company's premises, former staff describe the immediate consequences. Around 200 have joined together to demand answers, with court documents putting personnel-related claims at about A$6 million.

Jagdeep Singh says that after nine years with Bathla, he is owed up to A$80,000 in wages and benefits. "All the entitlement benefits are all unpaid. We don't even have payslips," he says.

University of Sydney corporate law professor Jason Harris explains that builders often have limited trading stock and circulating assets available to meet employee claims. His warning is blunt: "If they're still outstanding they may well be irrecoverable."

Administrators Teneo say wages for work after their appointment have been paid. But they do not expect funds to be available for earlier claims for at least six to twelve months, ABC reports.

For former employee Kelly, who holds a temporary visa, the uncertainty extends beyond recovering money. Losing employer sponsorship could mean having to leave Australia, while finding another job has proved difficult. The report also says temporary visa holders are excluded from the employee-entitlement safety net, leaving workers like her facing both an unpaid claim and an uncertain right to stay.

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