The provisional liquidator of failed medical insurer UMP is not facing huge troubles in developing a solution to restructure the insurer before the end of the year. Liquidator David Lombe has contradicted a recent front-page story in the Australian Financial Review which said he is “struggling” to meet the December 31 deadline.

The article said Mr Lombe, from Deloitte Touche Tohmatsu, had indicated it was taking longer than expected to work out a financial position for UMP and as a result the Government might have to extend the deadline for its financial guarantee to UMP’s 32,000 doctor members.

A spokeswoman for Mr Lombe told Sunrise Exchange News the AFR claims are not true. “There is always a small possibility that we may not be able to meet the deadline, but we are by no means at the stage that we are struggling,” she said. “To be honest, we are travelling along well.”

Mr Lombe is due to report to the NSW Supreme Court on August 30 about the different options that can be taken over the future of UMP. Until then, the liquidator is unable to comment publicly about the issue. 

One option that will be considered is the sale of the mutual to an interested commercial buyer – something that would be sure to raise the ire of the Australian Medical Association. Mr Lombe’s spokesperson said there are prospective buyers. “But at this stage a buyer taking over is only hypothetical. It will be up to the court to decide what options we can take.”