Creditors of Auckland-based Herbert Insurance have voted out the first liquidator appointed to the company.

Andrew McKay and Aaron Walsh of Corporate Finance Ltd were appointed joint liquidators at a meeting on March 25, replacing Damien Grant of Waterstone Insolvency.

insuranceNEWS.com.au has been told creditors were unhappy that the first liquidator sacked Herbert’s staff immediately after he was appointed.

The initial liquidator’s report found the company’s liabilities were around $NZ5 million ($3.7 million) and it had available assets of $NZ560,000 ($412,000), and a statement from Mr McKay and Mr Walsh said they will be working to determine whether this is an accurate picture of the company’s financial position.

Herbert went into voluntary liquidation on March 4 and was placed in receivership on March 7.

New Zealand’s Serious Fraud Office is investigating the group over concerns that premiums have not been transferred to insurers.

Aon has taken over the client book and been working to check clients’ coverage.

Herbert is also in receivership and the receiver, Michael Stiassny of KordaMentha, told insuranceNEWS.com.au that cover for clients has been arranged where needed.