Failed New Zealand broker Herbert Insurance is unlikely to have funds available to repay most creditors, even after the sale of its client book to Aon is finalised.

The latest report by receivers Michael Stiassny and Brendon Gibson of KordaMentha shows the company had a cashflow shortfall of $NZ71,000 ($55,000) at March 6.

Herbert’s secured creditor, ASB Bank, is owed $NZ948,000 ($740,000), and the receivers say there is likely to be a shortfall on any repayment to the bank.

Herbert went broke in March 2011 and its 4000-strong client book was sold to Aon, with settlement due by August this year.

The purchase price has not been disclosed, but the client book is Herbert’s key asset.

The receivers say there will be no funds to pay preferential claims by employees owed $NZ78,000 ($61,000), the Inland Revenue with $NZ314,000 ($245,000) and unsecured creditors owed around $NZ85,000 ($66,000).

The Serious Fraud Office is investigating Herbert’s collapse.