Liquidators said the same thing a year ago; that the process was going to take a further six months.
Loss adjusters, who had ceased work for the liquidators because of ''significant arrears'' unpaid, were back on the job and the liquidators are considering accepting a discounted $1.9 million reinsurer settlement.
However, it appears creditors and policyholders will be tens of millions of dollars out of pocket.
Total policyholder claims against Western, from the September 2010 earthquake and the devastating February 2011 quake total $48.2 million, but after estimates of the reinsurance recovery payouts at $32 million, the policyholders face a $16.1 million shortfall.
Western, whose directors were Queenstown-based Graham Smolenski and his brother in-law, collapsed in April 2011, following claims for just $6 million of the first Canterbury quake-related claims.
It was eventually revealed Western held 7000 policies around the world, with total potential liabilities of more than $10 billion. The initial creditor claims spiralled from $3.8 million to more than $65 million.
In liquidator Grant Thornton's latest update to creditors, Simon Thorn said the liquidation was ''unlikely to be completed in the next six months'', because of the considerable work to be done assessing and agreeing insurance claims, and went on to say there was no ''practicable'' estimate for completion.
In a strategy to speed up claims, Grant Thornton said that because of the limited funds available in the liquidation, it was agreed with the loss adjusters to target the assessment of some claims.
''We have selected a small number of claims aimed at recovering reinsurance proceeds which may then be utilised for wider assessment of claims,'' Mr Thorn said.
Once reinsurance proceeds were recovered, progress of Grant Thornton's loss adjustment would be ''intensified''.
He said Grant Thornton had received a proposal from an unidentified reinsurer to settle its obligations under both 2010 and 2011 policies, immediately, for a sum equivalent to 80% of its exposure.
Mr Thorn said that meant a discount of $554,118 and recovery of $1.93 million, after deduction of $280,553 in unpaid premiums owing to the reinsurer.
''We are presently assessing the merit of this proposal,'' Mr Thorn said.
Grant Thornton has, during the past six months, been using debt collection agencies, and also enforcing agreements with insurance brokers, to collect debts estimated to have totalled $749,629, arising from unremitted broker premiums and amounts due from individual policy holders.
Western Pacific Insurance collapse
Secured creditor claims
(to be paid, but not in full)
September 2010 earthquake ... $13.91 million
February 2011 earthquake ... $34.40 million
Total* ... $48.31 million
Unsecured creditor claims
(''unlikely'' to be paid)
Estimated unsecured insurance claims ... $16.85 million
Trade creditors ... $1.15 million
Unexpired premiums ... $740,794
Broker commissions ... $10,967
Total estimated unsecured claims** ... $18.75 million
Preferential creditors
extent of any payment unknown
IRD ... $87,559
Employees ... $117,932
*Less $16.1 million shortfall
**Excludes Canterbury earthquake claims of Sept 2010 and Feb 2011
- Source: Grant Thornton
