HIH liquidator Tony McGrath has won more time to pursue five companies for damages in relation to the $5.3 billion collapse of insurance giant HIH in 2001.

The NSW Supreme Court said Mr McGrath could have another year to investigate whether to sue HSBC Bank and its Australian operations, accountancy firm Ernst & Young and General Re Australia. The decision follows the court’s decision earlier in the month to grant an extension in relation to German reinsurer Hannover Re.

A sixth extension relating to action against US-owned National Indemnity Company – which is owned by US investor Warren Buffett’s Berkshire Hathaway – is expected to be granted soon.

Time was running out for Mr McGrath, as under the statute of limitations legal action cannot continue for longer than three years after a company is wound up. The third anniversary was this week.