Mr Nicholson's former private investment company, Hurricane House, is in liquidation owing investors $4.2 million.
He subsequently started a new company, Bendemeer Trustees Ltd, in April and attempted to raise money from investors to buy the 24-section Bendemeer subdivision near Lake Hayes for $12 million from receivers PricewaterhouseCoopers.
A $1.2 million non-refundable deposit was paid in early May.
Mr Nicholson was due to settle the outstanding $10.8 million on Thursday.
When contacted by the Otago Daily Times yesterday, he said he had been "advised not to comment" and referred any questions to his "media guy in Christchurch".
Brian Donovan, who confirmed he was acting for Mr Nicholson in media inquiries, said Mr Nicholson was "very positive" about the deal. Negotiations were continuing but Mr Donovan was not prepared to provide details because of the commercial sensitivity of the negotiations.
"There's no indication the deal won't go through," he said.
PricewaterhouseCoopers receiver John Fisk was contacted yesterday and said the Bendemeer settlement "didn't occur", but "meaningful conversations" were under way with Mr Nicholson.
Mr Nicholson had not been given a time extension but, under the sales agreement, he "has got time under the contract", Mr Fisk said.
Asked if PricewaterhouseCoopers had a new deadline for settlement, Mr Fisk would only say he hoped settlement would be made "as quickly as possible".
Hurricane House, which normally made commercial property investments, collapsed after Mr Nicholson put $4.5 million of his investors' cash, unsecured, into a boutique Christchurch finance company that went into liquidation a short time later owing $17 million.
He has described the decision to lend that money as a "brain implosion".
Mr Nicholson began soliciting for more funds earlier this year, saying later, when interviewed, that 90% of any Bendemeer profits would go to Hurricane creditors.
Mr Nicholson told would-be investors the Bendemeer subdivision, which is in receivership owing almost $40 million, had a $20 million valuation in April.
In the most recent email from Mr Nicholson to prospective investors, which was leaked to the Otago Daily Times, Mr Nicholson said, "I am very busy trying to rectify the Hurricane House situation, caused by my straying from my knitting and exacerbated by the global financial crisis."
In an email circulated to would-be investors in April, Mr Nicholson offered no prospectus outlining a profile of risk and reward, and instead addressed it to "habitual investors".
Habitual is a financial term used to distinguish between inexperienced "mum and dad investors" and experienced habitual investors who make their living from investing.
