The statutory managers controlling the affairs of Allan Hubbard's Aorangi Securities say it could take four years to repay investors.
The Government placed Allan Hubbard and his wife under statutory management in June last year, along with seven charitable trusts, Aorangi Securities and, later, Hubbard Management Funds.
The statutory managers, Richard Simpson and Trevor Thornton, of Grant Thornton, have just issued their sixth report to investors.
In it, they say the Aorangi loan book includes a wide range of non-performing farm, commercial property, forestry, infrastructure, personal and business loans.
Only a third of the borrowers are meeting their repayments, and requests for early repayment have been unsuccessful.
So, with Mr Hubbard's support, the statutory managers are taking legal action against some borrowers.
Transfer of assets on way
Investors are owed $96 million, and the statutory managers say Aorangi is worth between $87 million and $97 million - so investors could lose money.
Steps are being taken, however, to transfer up to $60 million worth of Mr and Mrs Hubbard's assets to Aorangi's portfolio for the benefit of investors.
The statutory managers are confident they will be able to pay investors 10c in the dollar by the end of June, but say it could take four years to realise all assets.