MMI Stockbrokers director decides not to sue liquidator

The liquidator of Money Markets International Stockbrokers (MMI) will not be apologising for his decision to institute proceedings, now withdrawn, alleging fraud against seven former directors of the company, the High Court heard yesterday. The action was discontinued earlier this month on the application of the liquidator, Mr Tom Kavanagh.

Last week, one of the directors, Mr John Curran, had sought a "statement of regret" from Mr Kavanagh for the effect of the fraud proceedings on Mr Curran and his family. On that occasion, the court heard that no apology was forthcoming and the matter was adjourned for a week to allow counsel for Mr Curran to consult with his client about the liquidator's stance.

When the matter was again raised before Mr Justice Kelly yesterday, Mr Brian O'Moore SC, for Mr Curran, said his client had decided not to take a claim for damages because this would affect MMI's creditors. Mr O'Moore said Mr Curran had sought a statement of regret from the liquidator, which was not forthcoming. Counsel remarked that it was difficult to see how the liquidator would not regret an action that had cost the MMI creditors a million pounds. "But so be it," counsel said. He added that Mr Curran had incurred substantial costs.

Mr Justice Kelly said no further order was required in the matter. There would be no inquiry regarding damages on foot of the liquidator's undertaking for damages (an undertaking given by the liquidator when the proceedings were instituted).

Mr Kavanagh, on behalf of the company, had taken the proceedings alleging fraud against seven former directors of MMI last October. All seven defendants - Messrs Oisin Fanning, John Curran, Paul Boucher, Colm O'Reilly, Tim Murphy, Cian Kelly and Peter O'Byrne - strongly denied the claims. The action was listed for hearing on March 21st last, but the liquidator applied to discontinue it after being refused an adjournment of the hearing.

He sought the adjournment on foot of an alleged change of attitude by Jersey-based Cater Allen Nominees Limited to the alleged un-authorised debiting of more than £1.9 million from accounts held by it, and by IBI Nominees Limited, and the alleged crediting of that amount to the benefit of two directors of MMI - Mr Fanning and Mr Curran - and some 20 others associated with these.

The High Court found there was no change of attitude on Cater Allen's part and stated that, whatever differences Cater Allen had with the defendants, the Jersey company had never alleged fraud by MMI.