Bathla’s collapse is symptomatic of Australia’s Ponzi economy

Friday 4 September 2026

Larry Kaine, managing partner at Corporate Recovery Partners, believes the collapse of property developer Bathla Group – one of Western Sydney’s biggest home builders – could be the biggest in Australian corporate history.

Bathla Group entered voluntary administration last week after running out of cash, leaving $3.6 billion in private‑credit debt, 2,000 homes mid‑construction, and 15,000 planned dwellings in limbo.

Kaine said the collapse is “unprecedented” in its size, warning the ripple effect could be significant.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.