They have received a third disbursement, but the payout expectations have again been downgraded.
All Purpose Finance, trading as St Kilda Finance, was placed in the hands of receivers in mid-November 2008 by its directors, owing almost $6.93 million to 358 mainly southern investors.
Its loan book, with lending of $9.6 million, was largely secured by second mortgages over property to New Zealand borrowers.
In the latest six-monthly report to May 10, just released by receiver Stephen Tubbs of BDO Spicers in Christchurch, Mr Tubbs said payments of 4.3c and 3c in the dollar were made in, respectively, December and May, with all disbursements to date totalling more than $2 million.
However, investors will likely see fewer funds returned overall than anticipated, with Mr Tubbs saying the percentage of "anticipated recoveries" had been revised downward - for the third time.
Initially, BDO expected a payout in the range of 45c-80c in the $1 payout, which was then downgraded to the lower end.
It was subsequently downgraded in January to a range of 40c-63c in the dollar; reset yesterday at 35c-36c in the dollar.
When the company was placed into receivership by its directors, St Kilda Finance's chairman, Dunedin businessman John Farry, said the company began winding down operations late in 2007.
Initially, this had progressed well.
But when the global financial crisis started to affect New Zealand, and as the credit squeeze grew, the value of land and building security diminished, he said.
St Kilda Finance had stopped taking investments in mid-2008 as reinvestment levels plummeted from 65% to 15% for St Kilda.
Investors deserted finance companies, spooked by the collapse of more than a dozen.
Mr Tubbs said there were 336 investors still involved, with a total 419 term deposits amounting to $5.2 million, and cash in the bank at present of $306,000.
On St Kilda's loan book are 16 loans totalling $7.3 million "largely secured by second mortgages over property" to New Zealanders.
"There are no related party loans," Mr Tubbs said.
"We will continue to distribute cash at bank once sufficient surplus funds are available," he said in his report.
