A leading homebuilder is facing a legal bid for it to be wound up in a dispute over an unfinished housing estate.

Creditors have lodged a high court petition for the winding up of Haven Homes Limited. The claim will be heard on January 15.

Property development company Haven Homes, based Malew Street in Castletown, has been struggling with difficult trading conditions for some time, amid rising costs and a slowdown in demand.

It says it will ‘robustly’ oppose the petition.

Question were asked in Tynwald in October about Haven Homes’ 96-home development in Castletown, The Meadows, where construction work stopped for some time this year and at least nine homes remain unfinished.

The petition for the winding up of Haven Homes was presented to the high court by builders merchants J Qualtrough and Co, of Hope Street, Castletown., Qualtrough’s boss John Qualtrough and Ballasalla-based investment company Sherwood Limited.

Haven Homes director Dave Lewis told Isle of Man Today: ‘We consider this petition to be a tactic surrounding a wider dispute that we cannot comment further on at the present time. We will be opposing this robustly.’

He added: ‘The Meadows is at the heart of the dispute and whilst I have no doubt it will be finished; I am unable to comment further at the moment.’

In a statement, the petitioners said their comments would be limited to matters in the public domain ‘due to a number of legal actions commenced against Haven and its directors’.

They said: ‘Firstly, the petitioners wish to stress that they do not have and have not at any time had any involvement in the financial affairs, management or ownership of Haven, or any of its related companies.

‘The petition principally relates to sums due and arising from or in relation to the development of the site known as The Meadows and in particular, the application of funds received in the course of such development otherwise than in accordance with contractual arrangements.

‘The petitioners claim that Haven is unable to pay its debts and that in the circumstances it would be just and equitable for it to be wound up.’

The petitioners acknowledged there may be other parties affected should Haven be found to be insolvent, particularly those who have acquired or are in contract to acquire homes at The Meadows. ‘It is hoped that the petition will serve to end the current uncertainty surrounding the stalled development,’ they added.

Creditors and contributories can attend the winding up hearing at 10am on January 15 in person or through their advocate to support or oppose the making of the order.

They must give notice of their intention to do so in writing to Sherwood’s advocates, Humphrey and Helfrich, of the Old Courthouse, Athol Street, Douglas, by 6pm on January 14, quoting reference SHE24/2.

Latest accounts for Haven Homes, dated February 21 this year, show that the company had total debts in respect of mortgages and charges of £2.63m. No financial statements showing the profit and loss account and liabilities are available publicly.

Planning consent for The Meadows (18/00524/B) was confirmed in September 2020 after an appeal against approval was rejected. Construction began the following year. Work stopped for some months this year but resumed about a month ago to complete one of the houses.

At the October sitting of Tynwald, Arbory, Castletown and Malew MHK Tim Glover said he had visited the estate during the summer and found that building had stopped there, and a number of houses at the back of that estate had not even been started.

He said he had been told that a new contractor will be in place to finish off the estate in January of next year.

Enterprise Minister Tim Johnston replied: ‘My understanding is that there are contingencies in place. We shall hopefully see that development continue, but I cannot comment any further on that at this stage.’

Haven Homes said it has applications being prepared for 44 predominantly large dwellings across three different sites, all in the south of the island. No other housing project is currently under way.

The company secured planning permission in February for a luxury cliffside development on the Shore Road Underway at Port St Mary (21/00547/B).

It also has planning approval to build 20 homes on the former gasworks site at Port St Mary (15/00870/B) and (20/00523/MCH).