Administrators of a waste management company linked to the troubled Premier Group IoM say there is no prospect that the island-based entity which funded it will get back any of the £39m it is owed.

New Earth Solutions Group Ltd and New Earth Financial Management Ltd went into administration in the UK in June last year.

Two days later DM Opco bought New Earth’s business for £5.9m, securing the five waste treatment sites it operated in the UK. The buyer also paid off £35m of debts that New Earth owed to the Co-op Bank.

Joint administrators Duff & Phelps are seeking a 12 month extension for them to conclude a claim by non-preferential creditors.

Claims totalling more than £36m have been received from non-preferential creditors who are now being told they will get back just 1.5p in the £1.

New Earth Group, which was managed and promoted by Premier Group IoM, now in voluntary liquidation, was funded by island-based New Earth Recycling and Renewables.

The high court in Douglas appointed liquidators to NERR in June last year and the winding up is being funded by the Manx taxpayer.

NERR and its two feeder funds, Premier Investment Opportunities Fund and Eclipse Investment Fund, had a valuation of $292m and a total of 3,249 investors, who are unlikely to get any of their money back.

The report by Duff & Phelps shows NERR was owed £39m by the group and there is no prospect of any dividend being paid.

Another fund linked to the Premier Group, Eco-Resources Fund is also being wound up. Eco had a total of 189 investors and a valuation of $61m.

The island’s financial regulator has confirmed it is actively reviewing ’allegations and events’ surrounding the Premier Group. But a former director has accused the Financial Services Authority of a ’witch-hunt’, insisting many investors made a profit and some could still do so.