Hih Case In Foreign Hands
Sydney Morning Herald
Friday September 19, 2008
THE future of an HIH Insurance court case that could cloud Malcolm Turnbull's leadership of the Liberal Party lies in the hands of four US companies and a group of insurers.
Lawyers for the HIH liquidator confirmed in the NSW Supreme Court yesterday that the case could be resolved before Christmas, but only if all parties can agree to settlement terms.The liquidator, Tony McGrath, is suing nine defendants to recover the $295 million HIH paid for FAI Insurances in 1998, plus interest. The defendants deny liability and have launched 44 cross-claims, some against each other and some drawing in six other defendants.The US defendants are three subsidiaries of the Berkshire Hathaway Group and the New York reinsurance broker Guy Carpenter & Co.Mr Turnbull and his former employer Goldman Sachs Australia, which advised FAI during the takeover, are defendants, along with the former Australian partners of FAI's auditor, the now defunct firm Arthur Andersen.
© 2008 Sydney Morning Herald
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