Six days later, Mr McGrath issued a statement saying the HIH group was in much worse condition than KPMG had thought when it advised the board on March 15. The deficiencies reflect previous optimistic valuation of assets, and extensive underestimation of liabilities. Although the liquidator has yet to produce an official figure, there is little doubt today that something was badly awry in the company's calculations. The insurance industry, the Federal and NSW governments all now assume that customers will not be paid in full. Some informed observers estimate they could get as little as a third of what they are owed.
Shareholders face little prospect of getting anything at all.