Bathla staff were stood down on Friday. (Supplied: Bathla website)
Staff of major property developer Bathla group have been stood down as the company struggles to stay afloat.
It comes as the NSW government knocked back a request from the company's administrators for financial support.
The Bathla Group fell into voluntary administration earlier this week, unable to pay debts that topped $3.2 billion.
The administrators stood down staff at the property developer's headquarters on Friday as the firm sought an urgent cash injection of $40 million to see it through until the end of September.
A spokesman for the NSW government said administrators made approaches to it for assistance.
"The government does not yet have a complete picture of the company’s financial position," the spokesman said.
Corporate regulator ASIC, and its new boss, is keeping a close watch on Australia's "permissive investment regime".
Several private credit firms have lent money to the developer, some of which have now limited investor redemptions.
About 2,000 homes are under construction across the group, and about 13,000 more are in its development pipeline.
Bathla is one of Sydney's most prolific residential developers, particularly across the city's west.
The company blamed a "perfect storm" of conditions for its collapse, including softening home sales, the federal government's property tax changes and high costs.
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