HIH creditors will receive another five cents in the dollar from early next year as liquidator Tony McGrath works to recover another $1 billion of the $5.3 billion lost after the group’s collapse in March 2001.

Mr McGrath has raised $2.1 billion to date from the liquidation process. He started paying back 8000 creditors in June with an initial amount of five cents in the dollar. He says he hopes to recover the outstanding funds through litigation against executives, advisers and companies associated with HIH and FAI Insurance.

Last week Mr McGrath told The Australian newspaper creditors could expect to receive up to 20 cents in the dollar during the next two years, which would include the payment made in June.

He said it would be another five years before liquidation would be finalised – longer than he originally expected. Settlements have been made with up to 20 smaller creditors in the past 12 months.