The New Earth Group of Funds included three collective investment schemes, including NERR which was an Isle of Man specialist fund.
The other two schemes were the Premier Investment Opportunities Fund (PIOF), an Isle of Man qualifying-type experienced investor fund; and the Eclipse Investment Fund, an Isle of Man qualifying fund investing into NERR.
Joint liquidators Sarah Sanders and Alex Adam of Deloitte were appointed to the New Earth Group of Funds in June 2016, following a court application by the Isle of Man Financial Services Authority (IOMFSA).
In a letter to shareholders dated 16 June, The Premier Group, which manages the New Earth funds, advised that it was unlikely that a sale of assets would generate a return for the fund.
The Isle of Man high court granted permission to wind up the fund in July 2016.
No money left
Adam wrote to NERR’s shareholders and creditors this month to explain there was no cash even to pay for the liquidation – and the island’s financial regulator had stepped in to pick up the tab, reports local newspaper Isle of Man Today.
According to a letter seen by another local newspaper, the Isle of Man Examiner, Adam said: “Due to the lack of readily available assets in the liquidation estate, the Isle of Man Financial Services Authority is providing funding by way of a non-recourse loan to the joint liquidators to meet the costs of the liquidation.
“This funding arrangement is subject to continuous review and can potentially be withdrawn at short notice.”
He added: “However, we have maintained dialogue with the FSA throughout the period with respect to the progress of and strategy for the liquidation and, for the time being, the funding arrangement remains in place to allow the investigations to continue.”
Adam describes the liquidation as a “complex matter” and said the focus was now on one potential claim relating to cash receipts into the company.
