The official liquidator of Money Markets International (MMI) Stockbrokers will seek High Court direction next Wednesday to determine the future of a legal action initiated by him against the seven former directors of the company for alleged misappropriation of funds. The directors have denied the claims.

In court yesterday, Mr John Gleeson, for the liquidator, Mr Tom Kavanagh, sought an adjournment of applications for the production of documents.

He said the official liquidator was seeking directions from the High Court regarding his action - against the directors - which application was listed for hearing before Ms Justice Laffoy next Wednesday. Whether the official liquidator would pursue his action would depend on the outcome of next Wednesday's hearing, counsel said.

Mr Justice O'Sullivan adjourned the applications for discovery of documents for mention only next Thursday.

The liquidator had claimed in earlier proceedings that £1.9 million had been taken from MMI Stockbrokers client account in the name of a Jersey island-based company, Cater Allen, and that at least £1 million of this was lodged to accounts in the names of two directors.

But Cater Allen has recently indicated to the liquidator that it does not believe the funds had been misapplied or fraudulently misappropriated.