Workers on the Cube development in Birmingham have been told by administrators they will be paid despite the financial problems being faced by the project.
Construction firm BulidAbility and the Birmingham Development Company (BSC) called in administrators PwC after talks with Lloyds over an extended bank facility failed.
But PwC has urged all those involved in the project to carry on working and get the Cube development finished on time. PwC wants the development to be completed within the next four months so it can market the asset as soon as possible.
The project includes the construction of a hotel, a rooftop restaurant and luxury flats.
The directors of BDC said in a statement they were “bitterly disappointed” at not being able to agree a deal with bank, “particularly when the project is so close to completion”.
The group’s chief, Alan Chatham, was also involved in the Mailbox project, which saw the transformation of a run down area in the city into a canalside area of quality shops and restaurants.
Although owned by a separate company to the Cube project, a deal with RBS and Lloyds was made because a buyer could not be found.