The statutory managers of Aorangi Securities say it's unlikely investors will get nearly all their money back if ownership of a disputed $60 million of assets goes against them.
Aorangi was placed into statutory management two years ago, leading to the collapse of the late Allan Hubbard's financial empire.
So far the statutory managers, Grant Thornton have paid 12 cents in the dollar to investors and another three cents will be paid on Wednesday next week.
But further payments are dependent on the outcome of legal action with Mr Hubbard's widow, Jean, to determine who owns $60 million worth of investments.
Grant Thornton says there could be a significant shortfall to investors if the court decides ownership lies with Mrs Hubbard.
Meanwhile, the statutory managers report they are making progress recovering other third party loans valued at about 39 million.
Grant Thornton is also the statutory manager of Hubbard Management Funds and says the court has now decided how to distribute $44 million to investors.
It says the court accepted a model submitted by Mrs Hubbard, and some 50 investors will have to repay a total $3 million already paid earlier this year.
The statutory manager says the decision may yet be appealed by some investors.