24 Feb 2016

Clients of embattled Stonewood Homes given reassurance

9:13 am on 24 February 2016

Clients of Stonewood Homes in Christchurch will have their properties completed but there may be delays, the Registered Master Builders Association says.

A Stonewood Homes house.

A Stonewood Homes house. Photo: Stonewood

The building company was placed in receivership yesterday with debts estimated at $15 million. It has 110 homes being built in Christchurch.

Association chief executive of David Kelly told Morning Report all the homes had Master Build Guarantees.

Receivers were expected to update homeowners on progress by the end of the week.

"There may be a few weeks delay is the best that I can guess at the moment.

"But I don't want to start putting figures on it because we just don't know," he said.

"Our intent is to work as fast as possible to minimise the delay."

Mr Kelly said homeowners affected should not pay other contractors or give out a new contract on their homes, as it could jeopardise their guarantee.

KordaMentha partner Grant Graham, who has been appointed receiver, said the company had been looking for fresh capital and hoped interested investors might now buy the business or some of its assets.

Home owners would be anxious but they should be getting an update by the end of the week on the progress on every house, Mr Graham said.

The receivership does not affect any other independently owned Stonewood franchises.