HIH Insurance Limited (the holding company of the HIH group) was a publicly listed company in Australia. Prior to its failure the HIH group was the second largest general insurer in Australia, and had operations in many other countries.
On 15 March 2001 the HIH group failed. A G McGrath and A R M Macintosh (then of KPMG Sydney) were appointed as provisional liquidators of HIH Insurance Limited and many of its subsidiaries. A J McMahon, T A Riddell, and J M Wardrop of KPMG London were appointed as provisional liquidators of some of the same companies in the United Kingdom, and also of other group companies incorporated in the UK. Other insolvency practitioners were appointed to various group companies incorporated in other parts of the world.
At the time of its failure, the HIH group consisted of more than 240 companies, of which eight were licensed or formerly licensed insurance companies incorporated in Australia. The majority of the remaining companies were holding and investment companies, in some cases licensed insurance companies incorporated in other jurisdictions.
On 27 August 2001, the Australian companies in Provisional Liquidation were placed into Liquidation. A G McGrath and A R M Macintosh were appointed as Liquidators.
On 1 July 2004, the Corporate Recovery division of KPMG Australia and KPMG New Zealand separated to form an independent entity, McGrathNicol+Partners.
On 1 July 2005, C J Honey of McGrathNicol+Partners replaced A R M Macintosh as joint Liquidator of the major Australian companies in the HIH Group.
On 29 March 2006, the Australian Liquidators and English Provisional Liquidators convened meetings of creditors of the eight companies that formerly held Australian insurance licenses to consider and vote upon the Schemes of Arrangement. Four of these companies also considered the proposal for English Schemes. All Schemes of Arrangement at these meetings received approval from those creditors present and eligible to vote.
On 26 May 2006, the Australian Schemes of Arrangement were sanctioned by the Supreme Court of New South Wales. The Orders granted were lodged with the Australian Securities and Investments Commission on 30 May 2006. The English Schemes of Arrangement were subsequently approved by the High Court of Justice in England and Wales on 12 June 2006 and lodged with the Registrar of Companies on 13 June 2006. The date of lodgement with the relevant regulatory authority is the date from which both the Australian and UK Schemes became effective.
On 19 January 2012, M S Walker of KPMG London replaced TA Riddell as provisional Liquidator and/or Scheme Administrator of the companies in the United Kingdom.