Project distress in Queensland: Lessons from the Bathla collapse

Kirsty Smith of Holding Redlich draws lessons from the collapse of Bathla Group for Queensland’s construction and infrastructure sector, emphasizing the importance of identifying early warning signs of financial distress, conducting ongoing financial due diligence, strengthening contractual protections such as step-in rights and performance security, and preserving payment and recovery entitlements, while warning that tight margins, funding pressures and an expanding infrastructure pipeline increase the risk of insolvency-related disruptions across interconnected projects.

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