Liquidators of a collapsed investment fund group say they are disappointed that former directors will not be interviewed under oath.

The Manx taxpayer is currently funding the winding up of New Earth Recycling and Renewables (Infrastructure) plc which went into liquidation in June 2016.

NERR and its two feeder funds were once valued at $292m but there is now no likelihood of any return for the 3,249 investors.

Last month, liquidators failed in their legal bid to question formers directors Michael Richardson and John Bourbon (pictured) under oath .

The directors had declined to be interviewed. But they insist they have nothing to hide - and given the volume of documentation and complexity of the matter they felt their responses to any questions should be in writing.

In a letter to NERR shareholders and creditors, liquidators said they were ’extremely disappointed’ by the outcome of the application to the high court.

Liquidator Alex Adam said: ’In circumstances where directors had presided over a £170m loss to investors and refused to voluntarily attend for oral interview, we had expected the court would appreciate the understandable desire to ensure matters were not delayed further than was absolutely necessary.

’Unfortunately, the court ruled that the joint liquidators had not sufficiently demonstrated that there was no alternative than an oral examination.

’Whilst we do not agree, when the court exercises its discretion in such matters there is little prospect of a successful appeal and, in any case, any appeal would result in further delay.’

The joint liquidators said that, nevertheless, they remain committed to fully investigating the circumstances which led to the failure of NERR and its feeder funds.

And they said they will continue to seek to obtain information from the directors through written correspondence.

’Unfortunately, this process is now likely to be more protracted and costly than oral interviews,’ said Mr Adam.

He added: ’It is worth noting that the court has left open a further application in the future, should written correspondence prove ineffective.’

Mr Adam promised to give a further update to investors in June this year - or earlier if there were any ’substantive developments’.

Liquidators told the high court they wanted to know the ’thought processes’ of key individuals in relation to the companies’ promotions, affairs and dealings.

But Deemster Corlett ruled the order sought was ’carte blanche’ in nature and should have detailed specific areas of proposed questioning.