Dorchester Pacific says it is in informal discussions with other finance companies to merge, if investors accept a repayment plan.
The troubled finance company has revealed a plan to repay $172 million to investors over three years, but says there's no guarantee they will get that amount back.
Executive director Paul Byrnes says if investors accept the plan, it will allow Dorchester to position itself for a merger.
However, he says he cannot reveal who Dorchester has been talking with about a potential merger.
Under its repayment plan, secured investors would receive 20% of their principal before Christmas; non-secured investors would receive 10%.
Dorchester says full repayment depends on how the economy and property market tracks.
Mr Byrnes says it's a better option that receivership.
He also says Dorchester plans to resume new lending to consumers, but not on property.