Halliwells' ex-partners are set for continued talks over the firm's £4m outstanding rent liabilities after failing to reach an agreement during the first round of mediation.

A second meeting has been scheduled after the defunct firm's former partners failed to reach a compromise with fellow ex-partner Paul Thomas over the rent obligations.

Thomas, a personal guarantor for Halliwells' former Manchester offices at St James's Court, is attempting to spread the liability for rent guaranteed on the premises until 2013.

The St James's Court landlord, Himor Group, has withdrawn its statutory demand against Thomas for the rent owed, which will allow the partners more time to come to an agreement.

Himor and Thomas were due to meet in court next month. The property company has asked Thomas to pay its legal fees and the two parties will now attempt to negotiate a solution.

Himor has instructed Eversheds while Thomas is being advised by Kennedys and John McGhee QC of Maitland Chambers.

A Himor spokesperson said: "We have been in discussions with our lawyers at Eversheds and we are working desperately to seek a resolution to the situation."

The second round of mediation between the equity partnership and Thomas, which was due to take place today (7 October), has now been put back a week, by which point it is hoped Thomas and the landlord will have a clearer idea of a suitable settlement.

The rent liabilities of the wider Halliwells partnership were put to question last month after 90 ex-partners, not including Thomas, resigned from the firm's limited liability partnership.

For more, see:

• Halliwells £4m liability dispute escalates as partners exit LLP
• Divided we fall – behind the headlines, the drama and confusion of Halliwells' collapse