The news gets worse for Nathans Finance debenture holders

Receiver Colin McCloy of PricewaterhouseCoopers said the 7,082 debenture holders owed $174 million "face a significant loss," with further distributions "dependent on the outcome of a number of actions currently in progress, including legal claims against various parties."

"A number of these actions may result in the realisation of substantial funds which will have a material impact on further recoveries for secured debenture holders," he said in his sixth report on the Nathans receivership.

Investors have been paid 3.7 cents in the dollar to date, and McCloy removed his indication that they receive no more than 10% of their principal from his previous update.

Meanwhile Nathans Finance directors Mervyn Doolan, John Hotchin, Kenneth (Roger) Moses and Donald Young  pleaded not guilty to charges laid against them by the Securities Commission.