Four ex-Cobbetts partners have served notice of potential legal action over the defunct LLP's insolvency, it has emerged. The move has blocked a final payout to the firm's major creditor, Lloyds TSB, which was owed £7.3m by Cobbetts when the national firm went down in early 2013. A final progress report by administrator KPMG notes the potential legal action against the LLP by the quartet, who claim money owed to them in capital and reserve accounts should have been held on trust. Lloyds TSB Bank holds debenture security on cash advanced two weeks before Cobbetts went into administration. The security was granted to allow money to be advanced to fund salary payments and drawings by members. Of the £7.3m owed to Lloyds at the time of the administrators' appointment, some £2.3m was secured. The administrators' report notes that a final distribution to the bank of £336,687 has been 'postponed' while liquidators investigate further.