Investors in Isle of Man-based fund New Earth Renewable and Recycling (Infrastructure) Plc (NERR) are unlikely to see any of their money back as the joint liquidators said today theirs was “the only course of action” for creditors.
Joint liquidators Alex Adam and David Craine brushed aside threats of legal action by a shareholders’ group calling for them to be sacked.
NERR, part of the South Africa-based New Earth Group, was managed and promoted by Premier Group Isle of Man, and sought to invest in recycling facilities across the UK.
But the business failed and went into liquidation last year.
NERR, and two feeder funds, Premier Investment Opportunities Fund and Eclipse Investment Fund, had a total of 3,249 investors, none of whom are likely to see any money coming back to them.
Two associated UK companies, New Earth Solutions Group Ltd and New Earth Solutions Facilities Management Ltd, also went into liquidation, with assets being sold on to third parties.
Shareholders’ legal action
A group of shareholders, fronted by a Ms Jane Sanders, described as a “barrister and former financial ombudsman service adjudicator”, had attempted to mount a legal bid to have the liquidators replaced, the Isle of Man Examiner reports today.
In a letter to shareholders and creditors of the collapsed fund seen by International Investment, the liquidators say that they had received an informal approach from Sanders, acting on behalf of Global Gateways and a group of independent financial advisers, “mooting a scheme whereby Global Gateways would bring some kind of legal claim in an attempt (as previously attempted without success) to gain control of some of the former assets of the UK Trading Companies” on unspecified terms and conditions”.
They add that they sought to obtain further information and supporting evidence from Sanders to assess whether such an action would be viable but note that no response has been received.
Liquidators: ‘The only course of action’
In a statement to the Isle of Man Examiner, the joint liquidators said: “While the joint liquidators retain an open mind, they do not currently believe further returns can be generated by a different set of actions.
“The joint liquidators have not received any credible offers or proposals to date, any parties wishing to propose courses of action must understand they will need to disclose information to the joint liquidators.
“Meanwhile, the joint liquidators continue to investigate the potential for recovery from other sources for the benefit of all creditors and investors.”