Capital + Merchant Finance investors have been told there are no assets left in the company to help recoup the $167 million they are owed.

Their only hope of recovering any capital lies in claims against directors and other parties involved with the company before it was dragged into receivership a year ago.

But receivers KordaMentha cannot assess if there are any claims to be made and how likely any claims are to succeed until they gain control of the company when first receiver Grant Thornton retires.

KordaMentha wrote to investors this month advising that Grant Thornton may retire before Christmas this year.

Their latest update shows that the only assets left in Capital + Merchant are insurance claims for losses on loans. The claims have not been accepted by insurers to date, KordaMentha understands.

Grant Thornton was appointed by priority creditors Fortress Credit Corp to recover their $22.6 million debt. But they say their actions have been in the best interests of all stakeholders, including debenture investors.

In May, KordaMentha said investors might be able to regain 10% of their investment.

Capital + Merchant had a $182.6 million value on its loan book when the company went into receivership, but receivers say they have struggled with recoveries in the current property and lending market and due to poor quality lending. 

Grant Thornton is also investigating a number of transactions made by the company which it is concerned about. When Capital + Merchant was placed in receivership, a judge commented that it appeared the company should have stopped taking public money some time earlier.