High Court to hear plea

An application by the liquidator of Money Markets International Stockbrokers Limited (MMI) to adjourn proceedings alleging fraud against MMI's directors will be heard by the High Court on Monday next.

Liquidator Mr Tom Kavanagh is seeking to adjourn his action against the directors, listed for hearing on March 21st, so that he can pursue investigations into the "mystifying" alleged change of attitude by a Jersey-based company, Cater Allen Nominees Limited, to the alleged unauthorised debiting of £1.9 million from its account and the alleged crediting of that amount to the benefit of two directors of MMI - Mr Oisin Fanning and Mr John Curran - and 21 people associated with them.

The liquidator, in earlier applications to Ms Justice Laffoy, said that in light of the alleged change of attitude - which has been denied by solicitors for Cater Allen - his proceedings alleging fraudulent conversion and breach of fiduciary duty by the seven MMI directors would be "extremely difficult" to maintain. The directors have denied the fraud allegations.

Mr Kavanagh has claimed that Cater Allen initially portrayed itself as the victim of unlawful conduct by the MMI directors. Recently, however, he says that the company appears to be adopting the position that the transfer of monies from its account - which formed the basis of the liquidator's action against the directors - was bona fide and authorised by it. Mr Kavanagh has also claimed that when the £1.9 million transaction allegedly occurred, there was only £1.4 million in the Cater Allen account, but that there has been no acknowledgement to date from Cater Allen that some £500,000 was owing.

On February 23rd last, the liquidator brought a motion seeking directions for the future of his action against the directors.

On Monday last, when the hearing resumed, the liquidator, supported by Prudential Bache and the Central Bank, asked Ms Justice Laffoy for leave to seek an adjournment of his action against the directors so he could conduct further investigations into Cater Allen's role. The judge granted liberty to seek the adjournment.

Yesterday, Mr Justice Kelly, who had been assigned to hear the March 21st action against the directors, said he would deal with the adjournment application on Monday. He also listed for mention on Monday discovery and other motions relating to the March 21st action.