KEY POINTS:
Hanover Finance owners Mark Hotchin and Eric Watson say they will contribute up to $96 million to support their stricken company.
Hanover and sister company United Finance ceased making repayments of principal and interest in late July to 16,500 investors owed $554 million, citing the collapse of the property development market and plummeting re-investment rates.
After seven weeks of work on a restructuring proposal which he pledged would include more financial support from himself and Mr Watson, Mr Hotchin confirmed he and his business partner would contribute up to $56 million in cash and up to $40 million in property assets to strengthen their company's balance sheet.
On top of their existing equity of $64 million, that would take total shareholders' funds to $160 million.
Mr Hotchin said the extra money was part of a plan "which puts a priority on returning capital" and would return 100c in the dollar to debenture holders over five years, or sooner if market conditions allowed.
Mr Hotchin said he hoped Hanover's investors would take heart from the news.
"This is a decision we made some weeks ago notwithstanding the fact that the market has continued to deteriorate, but we're committed to this so we'll see it through."
He said he, Mr Watson and Hanover's management were finalising details of the restructuring plan with trustees and advisers.
The completed proposal would probably be presented to investors within two or three weeks, and an investor vote would follow, probably late next month.
Mr Hotchin acknowledged the patience shown by Hanover and United investors.
"We're hoping to give them some comfort from this, and to send a message that we are standing behind the company and we're doing everything we can to get their money back."
Market commentators had estimated Mr Hotchin and Mr Watson would need to contribute between $40 million and $100 million to get their company back on its feet.
Mr Hotchin said it was hoped Hanover would survive and begin lending again.