The administration of a collapsed criminal legal aid firm has been extended by almost a year despite creditors expressing concern about mounting costs.

High-profile outfit One Legal went into administration two years ago owing more than £5.4m to staff and creditors. The meagre assets and work in progress of the firm mean that those owed money are likely to receive nothing back.

An update from joint administrator Robert Adamson, published this week, reveals that he had sought a decision from secured and preferential creditors to increase the administration fees from £198,700 to £301,188. This was to facilitate further investigations into the financial affairs of the firm.

The update states that former employees rejected the request for an increase, forcing an application to the court which was successful, resulting in the administration being extended until 2 January 2023.

Adamson, from insolvency firm Armstrong Watson, said: ‘The work in progress remains outstanding. We also continue to explore potential additional recoveries arising from our initial enquiries [which] have revealed certain areas which require further investigation.

‘These investigations are ongoing and further information will be provided to creditors in due course.’

As well as details of the extension, the update also reveals the extent of the debts incurred by One Legal Services, which was co-founded by former Stobart Barristers director Trevor Howarth and acquired Kaim Todner in 2016 to become one of the biggest criminal practices in the country.

The company’s records confirm there was a fixed and floating charge over the assets of the company held by Barclays Bank, which is owed around £526,000.

Preferential creditors, who are employees claiming for outstanding wages, holiday pay and redundancy payments, are thought to be owed almost £100,000 in total.

The biggest debt is to unsecured creditors who are owed £4.93m. The report notes it is ‘uncertain’ whether there will be any distribution to unsecured creditors, but given the firm’s total assets only come to £229,000 at this stage, there appears little chance of such debts being repaid.

Joint administrators’ remuneration was capped at the £198,700 figure but total time costs so far amount to almost £235,000, which represents 932 hours at an average charge out rate of £252. As well as administrator fees, national firm Knights LLP (formerly Keebles LLP) has incurred around £66,000 on legal fees and disbursements, of which £39,000 is still outstanding.