Mitchell, a director of Manx law firm Browne Craine and Co was appointed joint liquidator of the Premier Group (Isle of Man) last December.
Speaking to International Adviser, he said his role includes the liquidations of the Premier Diversified Property Fund and Premier Portfolio Fund, and confirmed that thousands of investors in these two funds are expected to have their money returned.
Meanwhile, co-director David Browne will act as the joint liquidator of the New Earth Group of funds, which were wound up by the Island’s authorities last July.
The New Earth group, comprising New Earth Recycling and Renewables (NERR), Premier Investment Opportunities Fund and Eclipse Investment Fund, invested in the development and ownership of recycling facilities in the UK.
Voluntary liquidation
Mitchell also confirmed that the Premier Group is being wound up voluntarily as it could not continue in business due to reduced sources of income.
The company’s directors Michael Richardson and Jamie Sutton have previously declared that the Premier Group would be able to pay its debts in full within 12 months, the Isle of Man Today reported earlier this month.
“As far as Premier Group (Isle of Man) is concerned, at the time I was appointed to the company as part of the member’s voluntary liquidation, all creditors of the group should be repaid in full,” Mitchell told IA.
However, he added that he has now applied for a different type of voluntary liquidation which does not guarantee that all creditors will be paid.
“This is because the company still needs to meet its regulatory obligations and I’m not sure what the costs will be. What I’m looking to do is to convert the existing arrangements to a creditor’s voluntary liquidation to give the creditors a say and an input into the liquidation,” explained Mitchell.
He said that the liquidation of the Premier Group does not affect the 3,247 investors who put £292m in the New Earth Fund, most of whom are still unlikely to see their money again.
Nicaraguan bamboo fund
Earlier this week, IA reported that the Isle of Man is investigating the collapse of another fund managed the Premier Group.
The Eco Resources Fund convinced 189 investors to put around $61m into building a bamboo plantation in Nicaragua. It was set up by the Premier Group in 2012 and promised a return of 500% over 15 years.
It went into liquidation last November after the Premier Group cited a “lack of liquidity”.
