Liquidator Grant Thornton told creditors in a report last month the judge might have made "errors of law" in his decision and the chance of an appeal succeeding was "fair".
However, any appeal was supposed to have been lodged in the High Court by Friday, by Grant Thornton, but it refused to say whether it intended to lodge an appeal.
Liquidator Simon Thorn was contacted on Friday morning and declined any comment on the appeal process, despite the deadline he had told claimants about.
"There are a few things being looked at. If there is anything to say, we will put out a press release," Mr Thorn said.
Mr Thorn's comments to creditors in a report last month, giving them a deadline of January 20 to indicate if they were willing to fund an appeal, highlighted the costs of legal action and likelihood of becoming involved with ongoing litigation through appeals.
Western was liquidated last April owing $6 million, which grew in leaps and bounds to $63.4 million by November.
Then the High Court allocated $33 million owed by Western's overseas reinsurers for payment only to 183 Christchurch earthquake claimants.
Justice Simon France's decision said the $33 million should be paid to the Christchurch creditors because it was the quakes of September and February in Christchurch that had prompted the claims.
Grant Thornton's December report said a further $24.2 million was owed to other claimants, including $13.55 million to Australian claimants, $2.01 million to Pacific and others and $1.24 million to New Zealand claimants outside Christchurch.
Mr Thorn said in the report legal advice had been sought on the merits of appealing the High Court judgement.
"Our legal advice is that the judge may have made errors of law in reaching his decision, which makes the judgement susceptible to be overturned on appeal and that they [legal advisers] regard the prospects of success as being fair,' the report said.
However, Mr Thorn said the creditors had to consider funding any appeal, noting the liquidators had "limited funds" for this, there was no claim available from the reinsurance fund and legal costs were estimated at more than $75,000.
Also, if the appeal was successful, it was possible the Christchurch claimants would, in turn, appeal the decision in the Supreme Court, incurring further costs.
While total claims under liquidation were $63.4 million, the insurer with 15 staff had more than 7000 policies, which amounted to worldwide liability of $10.25 billion.
Insurance sources have questioned how such a small company, with just a $500,000 bond lodged with Perpetual Trustees, could take on liabilities of more than $10 billion, including policies in Australia, Chile, Vanuatu, Abu Dhabi and numerous Pacific Island countries.
Western's directors were Queenstown-based Graham Smolenski and his brother-in-law, Jeff McNally, of Victoria, Australia, whose licence for his insurance broker service was removed by the Australian Securities and Investment Commission in April 2002.
Three months later, Western Pacific became an incorporated company and Mr McNally became a director in July 2003.
Findings last year by Grant Thornton noted Western accepted risks "outside the scope of its reinsurance policies" and "in some instances, premiums were too low". Industry insiders claimed premiums offered were "undercut" by up to 50% and "handling fees" were subsequently charged by brokers to clients to make up the percentage of income lost from the low premiums.
While the liquidators have described Western as "aggressive" to win market share, which "may have" led to its failure, other insurance insiders labelled it a "highly dangerous company" because of its low-premium approach to undercut the market.
