Property Finance Group says it's no longer a viable business, and its board will ask shareholders to support putting the company into voluntary liquidation and delist it from the stock exchange.
The company says it is unable to raise cash as a result of the financial crisis and cannot pursue any commercial activities.
The company's subsidiary, Property Finance Securities Ltd, was put into receivership in late 2007 and owed $70 million to 2400 investors at the end of last year.
Property Finance Group managing director Darryl Queen says the delisting and liquidation of the parent will not affect the winding down of the subsidiary nor the schedule to repay investors.
The voluntary liquidation proposal requires the approval of at least 75% of shareholders. The board says it will hold a special shareholder meeting on 31 May in Queenstown.