Approval of schemes of arrangement for HIH companies was given by Mr Justice Barrett at a sanction hearing on Friday May 26th 2006 in the Supreme Court in Sydney. Scheme Creditors had voted in favour of the schemes at meetings held on March 29th 2006.

The HIH group was the second largest general insurance group in Australia when it failed in March 2001. The principal liquidations occurred in Australia, but ancillary provisional liquidations were also commenced in England, where HIH operated a branch.

Complimentary Schemes of Arrangement in England have also been proposed for four of the HIH Companies.

Tom Riddell, KPMG partner and joint provisional liquidator of the HIH companies in England, said: "Now that the Australian Court approval has been given, we will apply for approval of the English Schemes. Subject to that, it is expected that a first distribution to creditors will be paid in July."