Prosecutors also said a trail of blood suggested Edward ‘Eddie’ Meenan was dragged to a Creggan Street alleyway where his partially clothed body was discovered in the early hours of last November 25.
Details emerged as one of the men charged with murdering the 52-year-old was refused bail.
Ryan Walters, 19, of Crawford Square in the city, is allegedly linked by blood found on a shoe. He denies the charge.
Police were informed Mr Meenan was attacked after a number of men emerged from a house in the area.
When the victim’s body was found he was wearing boxer shorts, with multiple injuries and slice marks detected.
A Crown lawyer said post mortem examinations confirmed at least 42 stab wounds, including some to his neck, chest, arm and leg.
Signs of blunt-force trauma to the face and a fractured nose pointed to heavy punches and possibly kicks having been inflicted as well, the court heard.
According to the lawyer one witness claimed Walters later told her over the phone: “I killed the fella, I stabbed him.”
But it was stressed in court that any such comments made had been untrue.
Opposing bail, the prosecution argued that Walters is forensically linked by the blood on a trainer seized from his address.
It was also contended that he was involved in an attempt to destroy evidence by burning clothing at a fire in the area that night.
A defence barrister rejected assertions that the accused may flee if released.
“That is cloud cuckoo land; he has nowhere to go and no resources,” counsel insisted.
He further argued that it could be a year before any trial gets underway.
But denying bail, Judge Brian Sherrard cited the potential risks of flight and further offences.