The Shareholders Association says investors in struggling printing company Bluestar are unlikely to reap much reward from a takeover offer under consideration by the business.
The company says it cannot disclose the details of the offer, but says it reflects the difficult trading and economic conditions affecting the print industry.
Last October, bondholders approved a controversial restructure of Bluestar's debt that resulted in bondholders foregoing income so the company could remain afloat.
The package included $15 million in new funding by the group's principal shareholder, the extension of existing funding lines and the easing of banking covenants.
Shareholders Association chairman John Hawkins says bondholders may not get any money back.
"Bondholders made the mistake of being seduced by the interest rate that was offered initially, and not looking at the underlying value and the underlying business cases of the bond before they bought it."