America's Cup: Team NZ, organisers' legal stoush with NZ Herald, Newstalk ZB heads to Auckland High Court

A legal battle involving America's Cup Event Ltd (ACE), Emirates Team New Zealand (ETNZ) and NZ Herald publisher NZME is set to be heard on Monday afternoon.

ACE and ETNZ have obtained an interim injunction order against NZME to prevent the media company publishing or broadcasting details of a report by forensic accountants Beattie Varley about record keeping and use of public funds.

NZME is fighting the interim injunction on the grounds of public interest, given the level of public money involved.

The Government announced on Thursday it would not make further payments to America's Cup organisers as it investigates claims over the spending of public money.

The Ministry of Business, Innovation and Employment (MBIE) said $40 million had been set aside for the event fee. To date $29m has been paid to ACE, in line with contractual funding milestones.

The Herald revealed last week that a confidential June 22 letter written by MBIE and Auckland Council and addressed to ETNZ and ACE revealed officials' concerns that event organisers were in breach of their obligations.

A multinational police investigation is now under way into how a hacker posing as a European television contractor convinced ETNZ to send a large financial payment to a Hungarian bank account.

ETNZ boss Grant Dalton has rejected any suggestion of wrongdoing.

Legal arguments will be heard at the High Court in Auckland later today.