Bathla Group Secures Partial Payroll Funding Amid Ongoing Negotiations

Embattled property developer Bathla Group looks set to meet its payroll deadline today as its future hangs in the balance.

The ABC has confirmed with two sources with direct knowledge of the negotiations that some funding has been secured to meet some of Bathla's payroll obligations today.

Meanwhile negotiations are continuing between the administrator and lenders over short-term funding.

The ABC understands some of the lenders are still working through a short-term funding package to keep the company going for the next few weeks, with legal teams drafting the terms of this package.

While the group is not being shut down, its situation remains precarious.

In a statement issued this afternoon voluntary administrators of Bathla Group, Teneo, said they "continue to negotiate with lenders to the group to secure a short-term funding package to enable the company to remain operational".

Administrator Stephen Longley said employees scheduled to be paid today would receive a payment covering wages accrued from August 25, when the administrators were appointed.

This amount is only a partial payment of their usual weekly and fortnightly wages.

The statement said that by working closely with Bathla employees, the administrators identified and secured the release of sufficient funds to make these partial payments.

"We recognise the importance of ensuring employees receive wages owed to them since our appointment and appreciate the constructive way Bathla's employees have worked with the administrators as we continue to assess the company's position," Mr Longley said.

"A key focus now is the first creditors meeting where those owed money will be given an opportunity to hear from the administrators, ask questions and consider procedural matters."

The first formal meeting of creditors is scheduled for Friday at 11am.

Bathla's future remains a day-to-day proposition

Bathla's demise has left the fate of 200 projects across NSW in jeopardy, with roughly 2,000 homes under construction and another 13,000 in its development pipeline.

The residential developer called in administrators last Tuesday after it was unable to pay debts that topped $3.2 billion.

A week later, the appointed administrator, consulting firm Teneo, pulled the pin on Bathla after no-one stepped forward to rescue the company.

Administrators had tried tapping existing lenders for extra funds and late last week asked the New South Wales government for a $20 million lifeline to keep the business afloat.

However, the state government refused to offer any bailout money.

At a press conference on Monday, administrator Stephen Longley said there was "no cash" and marked Thursday as the deadline for needing urgent funding if Bathla was to survive.

"We don't have any cash to pay wages [and] we don't have any cash to pay suppliers," he told reporters.

"So unless that situation can be resolved, we won't have any other option but to close the business."

But later that night, after holding an urgent meeting with lenders, he brought forward the deadline to Tuesday night.

The ABC earlier reported that some lenders had taken control of individual worksites and would be responsible for delivering particular projects.

Teneo also said it had borrowed $1 million from its own head office so Bathla Group could afford to pay for vehicle registrations, petrol and "just to keep the lights on".