The receivers of Dominion Finance Group say debenture holders could get as little as 10% of their original investment back.
Dominion was placed in receivership earlier this year, after its Trustee rejected its restructuring proposal.
It owes about $224 million to 6000 investors.
In its latest report, Deloitte says it expects debenture holders to get between 10 - 25 cents in the dollar. Unsecured creditors will get nothing.
It says the reason the estimate is low is partly due to the property market, but more to do with lending decisions made by Dominion.
Deloitte says the loan book is exposed to severe risk of loss because about 80% of the loans are secured by second mortgages or lower-ranking security.