HIH is still struggling to form its own understanding of exactly what its financial position is, while having to withstand unwelcome sniping from the sidelines. As Sunrise Exchange News reported last week, HIH has been trying to hose down media and analyst demands for information on its financial position prior to its scheduled March 16 statement to the ASX.

And it’s holding firm despite the ASX suspending trading in HIH shares and ASIC seizing records from the company for the ASX. ASIC also announced an investigation into the company’s alleged failure to adequately disclose its trading position. HIH spokesman John Clarke described the decision to stop trading in HIH shares as being “pushed down the path of trading exile, because we have failed to reproduce something for the ASX that is not within our capacity to produce right at this time”.

It appears HIH still doesn’t intend to rush things along at a pace faster than it’s comfortable with. Mr Clarke said the information will be made available only after the company’s directors have had a chance to digest it and receive advice. That may mean HIH shares remaining in suspension. They fell to 17.5 cents before the suspension. Three years ago they were worth $3.20. 

Of course, HIH is also formulating the details of its recovery plan, which it may use to soften the blow a little when it finally does announce its financial results. Analysts are suggesting the interim loss for the second half of 2000 will be between $100 million and $500 million.