The liquidation of Louis Group IoM is close to completion.

A final distribution is due to be made to creditors of the collapsed group but the joint liquidators admit losses have been significant and the experience of investors has been ’financially devastating’.

The high court order the collapsed Louis Group IoM to be wound up in 2013 as it was unable to pay its multi-million pounds debts. A liquidators’ report the following year concluded there was a ’taint of illegality’ across the vast majority of its business in the island.

Some 180 creditors’ claims, all but two unsecured, remain outstanding with a value in excess of £40m. But with Louis Group IoM having a cash balance of just £70,000, liquidators Mike Simpson and Gordon Wilson say those claims are ’to all intents worthless given the financial situation’.

Following legal advice it has been decided not to pursue a claim against Louis Group IoM’s insurers, Louis Group in South Africa or against the company founder Alan Louis personally.

Liquidators took the decision on the basis legal action would not be commercially viable or in the investors’ interests. But they noted the ’pivotal’ role Alan Louis played in the collapse and highlighted the extent to which he ’seemingly personally benefitted from the transfer of millions of pounds of investor sourced funds to his own personal accounts’.

They added: ’We have also reported our findings to appropriate authorities and it is for them to decide on actions that might be necessary to protect the investing public going forward as well as hold Alan Louis, and any others, accountable.

’Our job was to make a commercial assessment of possible causes of action and their potential to financially benefit investors if pursued.

’In that regard, having discussed the situation with our legal counsel, we decided that there were too many unknowns to justify further expense, not least whether Alan Louis would have the assets required to satisfy any judgment that might have been obtained against him.’

Liquidators have proposed a final scheme of arrangement to bring the liquidation to an orderly end.

’We believe that this final proposed scheme will clear the path towards this whole matter being brought to an end during 2017,’ they said.

They added: ’Whilst we fully acknowledge investor losses in Louis Group have been significant, we hope the distributions we have now made will help investors achieve a degree of closure and all affected can now move on from what has been for many a financially devastating experience.’

The Louis Group IoM collapse is being investigated by the financial crime unit.