Austin-Smith Lord has secured an extension on a deadline by which it has to reach an agreement with creditors over a company voluntary arrangement (CVA).

The troubled practice had until Monday to reach an agreement with creditors, which include Arup and Buro Four, over insolvency proceedings.

But creditors have agreed an extension until Friday, December 2, after the practice received a proposal of interest from a third party to assist with funding and work going forward.

Neil Chapman, partner at the firm, said: ”We are giving the received proposal serious consideration and assessing the merits of the offer for the practice, the project and our creditors. Whilst the fees received to date are not sufficient to avoid entering into a voluntary arrangement, it is incumbent on us to ensure we explore all possible avenues to recover and improve the situation to maximum effect and for all concerned.”

Last week Austin-Smith Lord was paid ￡2.4 million by its client on the suspended Abu Dhabi cultural project which has caused its current problems. The practice is owed ￡11.3 million in total.

A CVA allows an insolvent firm to agree a payment plan for some or all of its debts and avoid entering administration.

The spokeswoman added that a sum of money had been paid to Arup, to which the practice owes ￡3.8 million.