Hanover Finance has given investors a dire update on the state of the property development market, saying conditions have continued in a more negative direction in the last three months.
In a letter to investors, the troubled finance group says while some commentators believe the property market has reached its trough, development assets remain difficult to sell.
Hanover says it is still difficult to recover loans, given current property values.
The group is in the process of repaying investors more than $500 million owed, in quarterly instalments over five years.
This week it paid investors their third quarterly repayment, another 2% instalment.
Hanover says about 100 cheques sent out in June for its previous repayment have not yet been presented.