Why did HIH liquidator Tony McGrath pick the lead-up to a federal election – which involves political candidate Malcolm Turnbull – to file a civil action? Because he had to.

Ten parties involved with FAI Insurance when it was sold to HIH are facing civil action over alleged breaches of the Corporations Act, because Mr McGrath wants to keep his options open should he choose to make a specific claim in the next year against any or all of the defendants.

The action was filed late in August – five years and 11 months after HIH began its takeover of FAI Insurance on September 23 1998. There is a six-year statute of limitations on such actions, and Mr McGrath sees the activities that took place around FAI as central to the collapse of HIH.

Last week Sunrise Exchange News reported that Mr McGrath filed a claim against five individuals and five organisations, including Mr Turnbull, the Liberal Party candidate for the Sydney seat of Wentworth; his former colleague at Goldman Sachs Australia Russell Pillemer; FAI CEO Rodney Adler; and former FAI executives Timothy Mainprize and Daniel Wilkie.

Mr McGrath is seeking financial damages on behalf of HIH creditors after the $5.3 billion collapse of the company in 2001.