Australian regulator penalises developer's lender after collapse

Summarised from 2 outlets · Updated 9 Nov, 02:26 · Archive

Australia's financial watchdog has issued interim stop orders against private credit firm Angas Securities following the collapse of property developer Bathla Group.

Bathla Group, one of Sydney's largest residential developers, entered voluntary administration in late August after governments refused to deliver a bailout package. The company stood down more than 200 staff and halted construction projects, owing $3.4 billion to creditors. This comprised $3.08 billion to secured lenders, $130 million to unsecured lenders, $145 million to the tax office and $4 million to employees.

The Australian Securities and Investments Commission launched an investigation following the collapse. The watchdog announced on Monday that it had issued interim stop orders to Adelaide-based private credit firm Angas Securities, which had lent to Bathla. ASIC said the commercial lender did not adequately inform other investors about their vulnerable financial position because of its loans to Bathla. As a result, Angas Securities is temporarily halted from offering or selling interests in two of its funds. The commission said it would consider whether to issue permanent stop orders after giving the company an opportunity to respond to its findings.

ASIC Commissioner Simone Constant said the watchdog was working to understand how much Bathla's collapse was impacting retail investors. She said the developer's collapse highlighted the importance of private creditors being transparent. 'Investors need clear and timely information about the risks they are taking on, particularly when circumstances change and private credit loans run into difficulty,' Ms Constant said. The commission said it would continue its broader crackdown on private credit.

How it is being reported

• Developer's lender whacked as collapse probe continuesA private credit firm has been penalised by the finance watchdog as the fallout intensifies from the collapse of a property developer.Perth Now · 9 Nov, 02:13
• Developer's lender whacked as collapse probe continuesA private credit firm has been penalised by the finance watchdog as the fallout intensifies from the collapse of a property developer.The West Australian · 9 Nov, 02:13

In this story: Bathla Group · Angas Securities · Australian Securities and Investments Commission · Sydney · Adelaide · Simone Constant

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log