Allied Farmers may have to completely write down the value of Matarangi Beach Estates, a failed subsidiary.
Allied Farmers says the receivers have advised that it's unlikely any funds will be returned after the assets have been realised.
Matarangi Beach Estates has a book value of $3.6 million and Allied Farmers says it's likely it will have to write down that to zero.
Shares in Allied Farmers were unchanged at 0.8 cents on Wednesday.
They have fallen sharply since the company bought Hanover Finance's assets for almost $500 million in late 2009.