Fed: HIH collapse still to cost taxpayers $640 mln: Hockey

AAP General News (Australia)
08-28-2001
Fed: HIH collapse still to cost taxpayers $640 mln: Hockey

The government says its relief package for victims of the HIH collapse will still cost
around $640 million, despite fears the corporate disaster could exceed $5 billion in losses.

HIH liquidator TONY MCGRATH says the total deficiency of the HIH group of companies
is now estimated at anywhere between $3.6 billion and $5.3 billion.

But Financial Services and Regulation Minister JOE HOCKEY says the relief package will
remain at the same amount in the Budget papers, despite the upward revision.

Mr HOCKEY says the liquidator expects reliable estimates of creditor payment outcomes
will not be possible for at least one year and the current $640 million remains until
the revised estimates are in.

HIH was yesterday put into full liquidation by New South Wales Supreme Court judge
KIM SANTOW, after being in provisional liquidation.

AAP RTV jph/jh/jtb/jh/pc

KEYWORD: HIH HOCKEY (CANBERRA)

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