A dispute between King & Wood Mallesons and Standard Chartered over unpaid fees is holding up the administration of the law firm's former European arm, two years after the collapse of the legacy SJ Berwin business.

The administration, which has been ongoing since January 2017, has been extended once more after being prolonged by 12 months last January.

The dispute centres around fees for advice by KWM Europe partners on an internal reorganisation at Standard Chartered, which was carried out prior to the 2017 collapse of the firm's Europe and Middle East (EUME) arm.

The firm billed the bank a seven-figure sum for the work, which Standard Chartered has not yet paid.

According to one person close to the administration, the bank has been invited to settle the dispute, which is now expecting to move into mediation. Several former KWM partners have been interviewed by administrators Quantuma.

The other significant piece of litigation still being dealt with as part of the administration involves another banking client.

Former partners at KWM are still awaiting further updates regarding their tax loss allocations, with the relevant accounts still to be finalised, according to one person close to the process.

The EUME arm fell into administration in January 2017 after years of turbulence, late profit distributions and partner exits, although the firm has since re-established a slimmed-down presence across London and Europe.

Last year, the firm moved into new headquarters in London and appointed litigation partner Darren Roiser as its new London managing partner.