Troubled cable operator NTL is being sued by its banking adviser Morgan Stanley, according to reports.
Morgan Stanley is seeking £7m ($11.4m) in unpaid fees dating back to 1999, The Times newspaper said on Wednesday.
The two companies have, until now, been regarded as having a good relationship after working together for a number of years.
A spokeswoman for NTL has reportedly said the firm would consider contesting the claim.
Ongoing woes
The lawsuit is all the more surprising because Morgan Stanley is still advising NTL on its exit from Chapter 11 bankruptcy protection.
NTL's parent company, based in New York, filed for temporary protection from creditors under US Chapter 11 bankruptcy laws in May 2002.
Its debts had spiralled after a spending spree during the tech-boom of the late 1990s and the company soon found it was unable to meet repayments.
But NTL said in November that it was confident of exiting Chapter 11, despite failing to secure a deal with its creditors.
Firm friends?
Morgan Stanley is advising NTL together with Credit Suisse First Boston.
Mr Knapp says restructuring is almost complete.
It is expected to earn fees of up to $20m (£12.4m) for its help in restructuring the company, which has debts of £6.9bn.
The bank had previously advised NTL on its £8.2bn takeover of Cable & Wireless in July 1999, which created Britain's biggest cable company.
But it is now seeking advisory fees for "financial commitments made in 1999", according to The Times.
Re-born
NTL's restructuring proposals include splitting the company into two businesses - NTL UK and Ireland and a European division, NTL Euroco.
There has also been speculation that NTL will team up with rival cable firm Telewest, which is suffering similar financial difficulties and is in talks with its creditors.
NTL missed its November deadline for exiting Chapter 11 but its chief executive Barclay Knapp insisted it would do so in the "very near future".
The company reported in November that its profits before tax, interest payments and financial charges had risen to £182m in the July to September period, up from £174m during the previous three months.
The company's stronger bottom line reflected tough cost-cutting measures which had meant the loss of about 8,000 jobs over the past two years.
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