Liquidators of three failed investment funds are seeking to question two former directors under oath.

The high court heard 3,000 investors had put in £171m into New Earth Recycling and Renewables (Infrastructure) plc and protected cell companies Premier Investment Opportunities Fund and Eclipse Investment Fund. Last audited accounts at the end of 2014 showed the companies had a net asset value of £200m.

But despite that massive investment, the group of companies had failed and the assets are now zero or near zero, with no likelihood of any return to the investors, the court heard.

The Manx taxpayer is currently funding the winding up of NERR and the two feeder funds.

Liquidators want to summons former directors John Bourbon and Michael Richardson to be examined under oath after they declined to be interviewed. It is understood it’s the first time such an application has been made in the island. Advocate Rob Long said that neither Mr Bourbon or Mr Richardson are subject to any proposed proceedings and currently there was no intention to bring proceedings against them.

’In this case there are no proceedings afoot. They are currently not litigation targets although that may change,’ he said. The court heard the liquidators had in excess of 200,000 documents relating to the companies’ failure but Mr Long said these only told part of the story.

He said the liquidators wanted to know the ’thought processes’ of the key individuals in relation to the companies’ promotions, affairs and dealings.

’There is no other means of obtaining this information. It’s not in the documents,’ he said.

He said Mr Bourbon had received basic remuneration of £138,000 while Mr Richardson during the seven years of involvement had received a total of £907,000.

But Chiva Samari, advocate for the three companies, said liquidators had failed to demonstrate a reasonable requirement for the information sought.

She said this was an ’indiscriminate’ application that was ’carte blanche’ in its scope. ’They need to set out what they need in the information,’ she said.

Isle of Man Newspapers has requested Deemster Corlett make a ruling on whether the examination, if it is approved, is held in public, arguing this is in the public interest.

Mr Long told the court the hearing would be held in private, although the section of Companies Act used does not specify this.

Judgment in the case has been reserved.