HIH liquidator settles for $98 million from General Re
HIH liquidator Tony McGrath has been given the green light to accept a $98 million settlement from reinsurer General Re in an ongoing process which will take at least another three years to play out.
Judge Reginald Barrett approved the application for settlement in the NSW Supreme Court last week. Mr McGrath has been involved in recovering money for creditors ever since HIH, then Australia’s second-largest insurer, collapsed in 2001 with debts of $5.3 billion.
The scheme of arrangement approved in 2006 takes the liquidation out to at least 2013-15. Still to be finalised are proceedings involving hundreds more smaller reinsurance contracts.
Lawyers for Mr McGrath are expected to return to court next month to report on proceedings related to the takeover of FAI by HIH in 1998.
General Re is among nine defendants in the damages claim brought by the provisional liquidator.
The FAI-related claim is for $295 million plus interest over the 10-year period since the takeover.
Judge Reginald Barrett approved the application for settlement in the NSW Supreme Court last week. Mr McGrath has been involved in recovering money for creditors ever since HIH, then Australia’s second-largest insurer, collapsed in 2001 with debts of $5.3 billion.
The scheme of arrangement approved in 2006 takes the liquidation out to at least 2013-15. Still to be finalised are proceedings involving hundreds more smaller reinsurance contracts.
Lawyers for Mr McGrath are expected to return to court next month to report on proceedings related to the takeover of FAI by HIH in 1998.
General Re is among nine defendants in the damages claim brought by the provisional liquidator.
The FAI-related claim is for $295 million plus interest over the 10-year period since the takeover.