Costs incurred for the administration of insolvent law firm Cobbetts LLP have reached £844,000 and are likely to continue to rise.
According to a report from administrators KPMG up to December 2013, the insolvency process is due to run for at least another six months and costs could potentially exceed £1m.
Mark Firmin, Brian Green and Howard Smith of KPMG were appointed to the firm on 6 February 2013, selling the business to law firm DWF the next day as part of a pre-pack deal.
The firm entered administration owing £96.1m to unsecured creditors.
Between August and December 2013, administrators have racked up time costs of £226,324, pushing the total cost of the insolvency to a current total of £843,966.
So far, the administrators have realised £3.9m for creditors through the sale of the business and “certain assets” to DWF.
The report states the administrators have requested a further six month extension to the administration period in order to “facilitate realisation of the remaining assets of the LLP and to carry out an orderly exit from the administration.”
Debt recovery specialist Incasso, which was 100% owned by Cobbetts, was sold in a separate deal to midlands-based law firm HL Legal Solicitors in February 2013.