Island-based directors of a failed investment fund could be interviewed by liquidators in open court under oath.

The application has been made by liquidators of Manx-registered New Earth Recycling and Renewables (Infrastructure) Plc (NERR).

NERR was part of the New Earth Group of Funds, which invested in recycling plants in the UK.

Together with its two feeder funds it had some 3,249 investors and had been valued at $292m.

But when the company was wound up in June 2016, the value of those investments was close to zero.

The Manx taxpayer is currently funding the winding up of NERR.

Liquidators’ fees and expenses have totalled more than £374,700 to date.

NERR, which was managed and promoted by Premier Group IoM - itself now in liquidation - cannot be fully wound up until investigations into its failure are completed.

In an update to shareholders and creditors, liquidators investigating the reasons for NERR’s failure say they have sought to conduct formal fact-finding interviews with the company’s directors.

Two of the four directors, those based in the UK, attended for an initial interview.

Liquidators

But the liquidators said: ’However, all four have, through their legal advisers, informed the joint liquidators that they are now unwilling to be orally interviewed in relation to this matter and have indicated they will only provide written answers to any questions put to them.

’In the opinion of the joint liquidators, attempting to clarify the affairs and dealings of the company over a period of several years through written correspondence is both impractical and inefficient.’

In an unusual step, the liquidators have made an application, under the provisions of the Companies Act 1931, for NERR’s directors who have yet to be interviewed to be examined in open court on oath.

Those directors are actuary Michael Richardson, who lives in late comic legend Norman Wisdom’s former home in Andreas, and John Bourbon, of Lezayre, a former head of supervision at the Isle of Man Financial Supervision Commission.

’Assuming that the application is successful, we anticipate conducting the examinations during the course of the next few months, depending on the availability of court time,’ the liquidators added.

NERR’s assets were principally investments by way of equity and unsecured loans in three companies based in the UK - New Earth Solutions Group, New Earth Solutions Facilities Management and New Earth Energy Facilities Management.

Investments

Investigations are focusing on matters that resulted in a direct loss to the company - the value of investments made in the ultimately insolvent UK trading companies and the fees paid by the company to various service providers .

’Our initial investigations into the fees charged by one third party service provider highlighted concerns around the basis for such payments,’ the liquidators said in their update.

Mr Richardson and Mr Bourbon were also directors of Premier Group IoM, which went into voluntary liquidation in 2016. Mr Bourbon resigned as a director of NERR in April last year.