John Murphy, the former chief executive of the stricken satellite broadband company, said he will continue to pursue Ildana's former partner Pure Telecom through the courts despite failing to secure an injunction against the company in the High Court last month.

Murphy sought a court order directing Pure to return the money immediately, but was refused. "We didn't get the injunction and costs were awarded against me personally, " he said. "That doesn't mean the action has been stopped. We're still pursuing the money."

Pure Telecom chief executive Paul Connell said he is considering his own legal options in the light of the allegations that have been made against him and against the company. "We're not prepared to just sit down and lick our wounds, " he said.

Pure had agreed to purchase Ildana last December, but subsequently walked away from the deal citing irregularities in Ildana's accounts.

In the High Court last month, Murphy accused Pure Telecom of illegally transferring 19,000 out of a company account jointly held by Pure and Ildana prior to its decision to abort the planned takeover.

Pure denies this, but the dispute is set to rumble on.

"I have initiated legal proceedings against the company that is before the courts at the moment, " Murphy said. "We will be seeking, first and foremost, the return of the money."

Ildana will also be seeking "significant damages", he said, denying Pure Telecom's allegation of financial irregularities.

"There were absolutely not and I said that in my speech at the creditors' meeting, " he said. "I'm disappointed and, to be honest, stressed out to the last about some of the comments that have been made, " he added.

Meanwhile, it has emerged that several telecoms companies have expressed an interest in buying Ildana out of liquidation. It is understood Smart Telecom, Digiweb and Fastnet Broadband have all expressed interest. Liquidator Neil Hughes of accountants Hughes Blake would not comment on the sale process but said "it is clear now that there will be a continuation of service to all customers of Ildana".

The company had supplied internet services to around 30 rural communities under the government-backed Group Broadband Scheme.