Receiver Colin McCloy of PricewaterhouseCoopers said the 7,082 debenture holders owed $174 million "face a significant loss," with further distributions "dependent on the outcome of a number of actions currently in progress, including legal claims against various parties."
"A number of these actions may result in the realisation of substantial funds which will have a material impact on further recoveries for secured debenture holders," he said in his sixth report on the Nathans receivership.
Investors have been paid 3.7 cents in the dollar to date, and McCloy removed his indication that they receive no more than 10% of their principal from his previous update.
Meanwhile Nathans Finance directors Mervyn Doolan, John Hotchin, Kenneth (Roger) Moses and Donald Young pleaded not guilty to charges laid against them by the Securities Commission.
The commission alleges Nathans' offer document misled investors about the risks of investing in the company, especially the risks of its related party lending.
It also alleges that the directors made untrue statements in the company's registered prospectus and investment statement of December 13, 2006.
The directors' trial will begin on March 14 next year.
They have requested a trial without a jury.
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