Advertisement
Property developer Bathla Group entered voluntary administration late last month 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.
Around 40 private credit funds are owed more than $3 billion, including PAG, Balmain, Trilogy, Centuria Bass, Ray White Capital, and La Trobe Financial.
Some lenders have already frozen investor redemptions because their money is tied up in Bathla projects. For example, Centuria Bass froze $670 million in redemptions. Another lender, 360 Capital, has paused trading of its ASX-listed securities.
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
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.
Advertisement