Liquidators of a collapsed investment fund have told investors their best chance of getting any money back is to pursue a claim against third parties.

The Manx taxpayer is currently funding the winding up of New Earth Recycling and Renewables (NERR), part of the New Earth Group of Funds, which went into liquidation in June last year.

The group, which was managed and promoted by Premier Group Isle of Man, invested in the development and ownership of recycling facilities in the UK.

NERR and its two feeder funds, Premier Investment Opportunities Fund and Eclipse Investment Fund, had some 3,249 investors, the majority of whom are unlikely to get any of their money back.

Joint liquidator Alex Adam of Deloitte informed NERR’s shareholders and creditors that a distribution of £364,967 had been received from the administrators of New Earth Solutions Group Limited, a UK trading entity in which NERR owned a majority stake.

This was paid as a first and final dividend of 1.5p in the £ to all unsecured creditors.

But Mr Adam said the costs of the liquidation to date already exceed that £365,000, and so the receipt of the dividend will not result in a distribution to NERR’s creditors or shareholders.

He added: ’We still believe that any substantial recovery will depend on identifying and then successfully pursuing claims against third parties.

’At the present time the Isle of Man Financial Services Authority are continuing to facilitate the funding of the liquidation on public interest grounds - as noted previously, this funding can be withdrawn at any time.’

New Earth Solutions Group Ltd and New Earth Financial Management Ltd went into administration in the UK in June last year. A report by joint administrators Duff & Phelps shows NERR was owed £39m by the group.

Another fund linked to the Premier Group, Eco-Resources Fund is also being wound up. The financial regulator has confirmed it is actively reviewing ’allegations and events’ surrounding the Premier Group.