This blog post was written by James McMillan, a partner at Kensington Swan specialising in insolvency and restructuring.
Rhys Cain and Rees Logan, the liquidators of the three Stonewood companies that went into receivership and then liquidation earlier this year, have obtained $1 million in funding to investigate why the companies failed. The liquidators say that they will use this funding, which comes from an unknown source, to investigate ‘…the governance, management and events that led up to all three of the companies being placed into receivership earlier this year.’ The liquidators have also indicated that they will use the funding to pursue any recovery actions, including clawback of insolvent transactions and claims against directors and professional advisors.
The three Stonewood companies are Holmfirth Group Limited and its two subsidiaries, Stonewood Homes Limited and Stonewood Homes New Zealand Limited. Click here to read the liquidators’ report for Holmfirth Group Limited. The fighting fund obtained by the liquidators comes in response to creditor interest in an investigation and court action and is needed because there were no funds available in the liquidations. In March this year the Stonewood businesses were sold to Inno Capital, a lender run by the Chow brothers and Clint Webber.