The voluntary administrators of the troubled insurance company, CBL Corporation, have recommended it be placed into liquidation.
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CBL's problems stem from doubts that it has sufficient financial resources to cover potential insurance claims.
The KordaMentha administrators have made the recommendation in a report to creditors, ahead of the watershed meeting to be held next Friday.
The High Court in March gave them extra time to prepare the report and call the meeting, which will decide the future of the group.
The administrators said that liquidation would allow the liquidator to make make further investigations into how the company got into trouble.
The key subsidiary of CBL Corporation is an insurance business, which the Reserve Bank applied to put into liquidation in February.
The administrators said they were working with some directors of company on a proposal to restructure the group.
"It is too early to assess the return to creditors or shareholders."
They said it would be dependant on a number of factors including any restructuring proposal, "the sale processes currently underway for the group's business units, the outcomes of the CBLI and CBLIE insolvency processes" and "any potential legal actions that might be available".
"The Reserve Bank's application to liquidate CBLI is being opposed. The hearing is set down for 5 and 6 June 2018," the administrators said.