Key Facts:
- The collapse of Sydney developer Bathla Group could trigger a wave of secondary insolvencies across Australia’s construction sector.
- Jirsch Sutherland urges subcontractors and suppliers to act immediately to protect their businesses.
- Drawing on the 2018 collapse of UK construction giant Carillion – where the first subcontractor liquidation occurred within two weeks and consequential failures continued for 18 months – the firm predicts a similar staggered chain reaction following Bathla’s failure.
- Subcontractors are particularly vulnerable because they effectively act as cashflow buffers, meaning a developer’s failure can instantly create severe financial pressure…