Creditors of HIH Insurance will finally be able to access compensation for the botched 1998 takeover of FAI Insurance following a backdown by one partner of its former auditing firm.

According to the Sydney Morning Herald, only one of 117 former partners of dissolved accounting firm Arthur Andersen stood in the way of a settlement. But he has since changed his stance, paving the way for payments to proceed.

A hearing for final orders in the NSW Supreme Court is scheduled for March 24 now that the unidentified partner has agreed to sign the deeds of release.

The amount of the settlement has not been disclosed, but it’s expected to be a substantial part of the $500 million claimed by HIH liquidator Tony McGrath, who sued in 2006 to recover $300 million spent by HIH in acquiring FAI.

Proceeds from the case will go to HIH creditors, including the Federal Government in return for its own compensation payments made to individuals and small businesses in the wake of the $5.3 billion bust.