Bernard Madoff will appear in court in New York tomorrow after being given an extra day to get three co-signers to guarantee $10 million (£6.53 million) bail terms, in addition to his wife, who has already signed it.

Mr Madoff, who was arrested last week after he apparently admitted running a $50 billion "giant Ponzi scheme" through his 48-year-old investment company, had been expected to appear at Pearl Street court in downtown Manhattan at 2pm EST (7pm GMT). That deadline was extended until Wednesday, according to a order from US Magistrate Judge Gabriel Gorenstein.

Last Friday, he was in court to hear the securities fraud charge against him and was granted $10 million bail by Judge Douglas Eaton. His bail was posted by his wife, Ruth, and one of the conditions of the bond is that he cannot stray far beyond the New York state boundaries. Mr Madoff’s brother, Peter, has also signed the bond.

Last week, Mr Madoff met only some of his bail terms and at tomorrow's hearing he is expected to fulfil the outstanding conditions, providing the court with countersigned documents and providing details of his primary residence in New York. The bond is also to be secured by Mr Madoff’s Manhattan apartment, which the government said was valued at about $7 million. He also has been ordered to surrender his travel documents.

Last night, officials started to liquidate the remaining assets in his company, Bernard L. Madoff Investment Securities.

The Securities Investor Protection Corp (SIPC), a non-profit body which provides limited insurances to investors, has appointed Irving Picard as trustee to oversee the liquidation of Mr Madoff's brokerage to try and salvage any money for his former customers.

In a statement, Mr Picard said he would "work with SIPC to do what the law allows to ameliorate losses to customers".

It is unclear at this stage if any assets will be retrieved for the growing list of casualties from the alleged scam, which include Royal Bank of Scotland, HSBC and Santander, owner of Abbey.

The Securities and Exchange Commission (SEC) complaint filed against Mr Madoff states that the broker had between $200 million and $300 million that he was intending to distribute to friends, family and clients just before he was arrested.

While Bernard L. Madoff Investment Securities was understood to have $17 billion in funds under management at the beginning of 2008, the SEC said these assets have all but disappeared and that the business was believed to be trading insolvent “for years”.

News of the liquidation came as Mr Madoff's sons broke their silence on the allegations engulfing their father.

Mark and Andrew Madoff, who worked at the family firm and are believed to have blown the whistle on their father, issued a statement, denying knowledge of his alleged activities.

A lawyer for the brothers said they were not involved in the asset management operations of the company, and that "they were shocked to learn of his actions".

Martin Flumenbaum, of Paul, Weiss, Rifkind, Wharton & Garrison, the law firm representing them, added: "The brothers were among the many victims of this scheme and will continue to co-operate fully with the US Attorney and the SEC in their investigations."

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