The liquidators of failed New Zealand insurer Western Pacific Insurance are having trouble dealing with claims because they do not have funds available to hire loss adjusters.

The latest report by liquidators David Ruscoe and Simon Thorn of Grant Thornton says they are focused on recovering reinsurance proceeds, but limited income means they cannot hire adjusters to assess claims.

The liquidators considered appealing the NZ High Court’s decision last year that reinsurance money relating to the Christchurch earthquakes should go to claims from the earthquakes rather than to all creditors.

They are now negotiating over how the reinsurance money should be disbursed, and are holding $NZ257,000 ($202,000) in reinsurance proceeds until they receive a court order on how it can be applied.

Western Pacific went into liquidation in April last year and $NZ34 million ($26 million) in reinsurance from the earthquakes is its only substantial asset.

At the end of last year the liquidators estimated it had $NZ46 million ($36 million) in claims from the September 2010 and February 22 earthquakes.

The liquidators say they continue to chase debtors owing $NZ1 million ($786,000), including brokers who have not remitted premiums.

“Recovery action is ongoing in respect of the balance of outstanding debtors, which includes using debt collection agencies and taking actions as per broker agreements,” the report says.

The liquidators are also investigating the company’s affairs to identify whether any recovery action is warranted in respect of “voidable transactions or reckless trading”.

The company has $NZ65 million ($51 million) in unsecured debts, including earthquake and other insurance claims of $NZ63 million ($50 million).

The Inland Revenue office is a preferential creditor owed $NZ87,000 ($68,000), as are employees owed $NZ117,000 ($92,000). The liquidators have not reviewed their claims and say any payment would have to come from debt recovery.