Published Tue, Sep 8, 2026 · 02:58 PM

[sydney] An Australian state minister on Tuesday (Sep 8) said the government had no plans to bail out struggling home builder Bathla Group, as the debt-laden developer faces the prospect of liquidation with thousands of homes under construction in limbo.

Administrators last month assumed control of Bathla, one of the country’s most prolific affordable housing developers which operates in Sydney’s western suburbs, to manage more than A$3 billion (US$2.2 billion) in debt owed to dozens of private lenders.

The collapse has highlighted the risks of Australia’s booming A$200 billion private credit sector and threatens to complicate government housing construction targets to address a nationwide shortage of homes.

If Bathla is liquidated, it would represent one of the biggest corporate failures in Australia’s history.

Paul Scully, the planning minister for New South Wales, where Sydney is located, said the state was not in a position to rescue the company.

“I wouldn’t see it at this stage. We also don’t know how much we’re exposed to, and that’s part of the challenge because it’s so opaque…