HIH liquidator to proceed on settlement
HIH liquidator Tony McGrath has received clearance to settle a $529 million civil damages case over HIH’s 1999 acquisition of FAI Insurance.
Sources close to the matter told insuranceNEWS.com.au Mr McGrath now has authority to sign settlement agreements with all nine respondents to the action, including federal Opposition Leader Malcolm Turnbull and his then-employer Goldman Sachs Australia.
Representatives of HIH creditors approved the terms last month.
Goldman Sachs was sued over advice given to FAI Insurance. Mr Turnbull and the bank were cleared by HIH Royal Commissioner Justice Neville Owen of withholding information about the true value of FAI.
Other companies involved in the litigation are General Re and reinsurance broker Guy Carpenter. HIH paid $295 million for FAI, but Mr McGrath says the company was actually worthless.
The case is due to return to court next month for final approval.
Sources close to the matter told insuranceNEWS.com.au Mr McGrath now has authority to sign settlement agreements with all nine respondents to the action, including federal Opposition Leader Malcolm Turnbull and his then-employer Goldman Sachs Australia.
Representatives of HIH creditors approved the terms last month.
Goldman Sachs was sued over advice given to FAI Insurance. Mr Turnbull and the bank were cleared by HIH Royal Commissioner Justice Neville Owen of withholding information about the true value of FAI.
Other companies involved in the litigation are General Re and reinsurance broker Guy Carpenter. HIH paid $295 million for FAI, but Mr McGrath says the company was actually worthless.
The case is due to return to court next month for final approval.