An application by the liquidator of Money Markets International (MMI) Stockbrokers Ltd for directions on how to deal with the various claims and categories of creditors was adjourned for a week at the High Court yesterday.

Ms Justice Laffoy also adjourned until July 15th an application for the return to a businessman of £293,000 which was transferred on his behalf to MMI for the purchase of shares on the same day that MMI was suspended by the Irish Stock Exchange.

MMI was wound up by the High Court last March and a Dublin accountant, Mr Tom Kavanagh, was appointed liquidator. The March hearing was told there were assets relating to "settled transactions" totalling £3.5 million.

Those transactions involved clients who got their securities, with money being paid by MMI. However, the clients had not settled their accounts with MMI before it went into liquidation.

The earlier court hearing was told there were also "unsettled transactions" totalling £13 million. These transactions would not be a claim in the liquidation as "counter parties" (brokers who dealt with MMI) were being put in touch with "principals" (persons or organisations who bought shares through MMI). In those circumstances MMI's interest, it was claimed, would amount to commission earned on the £13 million.

Last week, one of the "counter parties" - London stockbroking firm K and H Options - applied to the Master of the High Court for liberty to enter final judgment for £3,907,372 sterling against a Co Cavan-based company director, Mr Brendan Murtagh, of Dunheeda, Kingscourt.

The Master adjourned the application for one week when told that Mr Murtagh wished to put in a sworn statement opposing the claim.

Yesterday, the liquidator asked the High Court's assistance concerning his entitlement to recoup sums due to MMI out of client funds.

He also asked for directions as to whether sums due should be the subject of a setoff where the clients had given authorisation to utilise their credit balances for the benefit of other clients for the purposes of such a set-off; and where a set-off had been authorised by the clients in respect of their own debts and credit.

Mr Kavanagh asked the court to decide what adjustments should be made to the client accounts of MMI in respect of "option premia" for unsettled and settled stock exchange transactions.

Lawyers for Mr Murtagh and K and H Options sought adjournments yesterday so that they could put in affidavits in relation to the liquidator's application. A solicitor for two MMI directors, Mr Ian Lawrie and Mr Tim Murphy, said the directors felt, following a meeting with the liquidator, that they might have an input into the proceedings.

Mr John Gleeson, for the liquidator, said that, in view of the large number of interested parties, it would be necessary for the court to decide who should be represented during the hearing of the liquidator's application, otherwise there would be a danger of over-representation.

Ms Justice Laffoy said that would not happen and she intended to look closely at the matter of representation.

Mr Denis McDonald, for the Central Bank, said his client would not be taking an active part in the proceedings but might be able to supply some additional evidence which could be of assistance in the liquidation.

The judge was told that three large creditors, who had been identified and who appeared to be in the same position as Mr Murtagh, were a Mr Rethoret and a Mr de Boccard, both of Geneva, and Mr Patrick Griffin, with an address in Monkstown.