Liquidators of a failed island investment fund say they are considering their next steps after directors didn’t give them the detailed answers they wanted.
Earlier this year, liquidators of New Earth Renewables and Recycling (Infrastructure) plc failed in their legal bid to question two former directors under oath.
The high court heard 3,000 investors put in £171m into NERR and its feeder funds Premier Investment Opportunities Fund and Eclipse Investment Fund.
But the companies failed with no likelihood of any return to the investors. The Manx taxpayer is currently funding the winding up of NERR.
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Liquidators wanted former directors John Bourbon and Michael Richardson to be examined under oath after they declined to be interviewed.
But the application - the first of its kind made in the island - was rejected by the Deemster who said the liquidators ought to have pursued an offer made by the two directors to provide further written information and answers to specific questions.
In an update to creditors and shareholders, joint liquidator Alex Adam said that ruling was ’regrettable’.
He said: ’Having received and reviewed the responses to the initial round of questions the liquidators are disappointed at the lack of insight provided.
’We are considering the appropriate next steps with our legal advisers.’
Mr Adam said he and fellow liquidator David Craine are continuing to investigate the roles of other advisers to the company.
He said despite a number of requests, a ’substantive’ response has yet to be received from a service provider to which a letter of claim has been submitted.
Without a formal response, the joint liquidators say the only course of action will be to issue formal proceedings. But to do so, they need to be sure there is sufficient funding in place.
Mr Adam said it is understood there may be other parties who have or may seek to bring claims against this entity. ’We continue to monitor this position with our legal advisers and, should it be appropriate, will begin formal proceedings,’ he said.
He revealed a third party wants to restore two New Earth companies in the UK to the company register with a view to challenge former directors and seek further recoveries for the creditors.
Liquidators described this as ’highly speculative’ but said they would support it if there was at least a potential for a recovery.