Creditors left high and dry after the collapse of HIH in 2001 will receive their first lot of dividends mid-year.

A meeting of the creditors will be held on March 29 to vote on the proposed schemes of arrangement, which will result in a dividend of five cents in the dollar. Total dividends of between 20 and 30 cents in the dollar are expected.

The Australian liquidators have concluded that the implementation of schemes of arrangement between the eight HIH companies that held Australian insurance licences and their respective creditors is the best way of maximising the return and achieving the earliest practical distribution to creditors of those companies.

The majority of businesses affected by the HIH collapse were reimbursed by the Federal and state Governments, which are now one of the main creditors to be paid out.

The final amount paid to creditors will depend on the lodgement of further insurance claims on policies and extracting of damages from HIH’s directors and auditors.