Liquidators of Western Pacific Insurance have used the failed New Zealand company’s first reinsurance payout to fund loss adjusters and pay fees, so assessments can continue.

Western Pacific went into liquidation in April 2011 after the Canterbury earthquakes. It is holding about $NZ48.33 million ($42.14 million) in earthquake claims, which have a charge over reinsurance of about $NZ33.9 million ($29.56 million), the company’s only asset.

Loss adjusters had stopped working before liquidator Grant Thornton was appointed, because they had not been paid. But they agreed to keep working on a number of claims that would provide reinsurance to keep the process going.

Grant Thornton has now received a $NZ1.9 million ($1.66 million) payout from a reinsurer and submitted a further claim to the panel of reinsurers covering quake losses.

It is also chasing “significant” unremitted premiums held by brokers and still has to recover $NZ776,000 ($676,000) from debtors.

Unsecured creditors with claims of $NZ17.68 million ($15.42 million) are unlikely to see any recovery. An investigation into the company continues.