Work on Hull’s £12m new footbridge over Castle Street is expected to continue “as normal” despite the collapse of the firm building it.
Interserve, which carries out Government work in prisons, schools and hospitals, is set to plunge into administration on Friday after it failed to secure investor backing for a rescue plan.
The company is building the new bridge over Castle Street, which will connect the city centre to Hull’s Fruit Market and marina area.
Despite the collapse, bosses at Interserve have said work on existing projects will continue.
The business said: "The board of directors of the company is convening an urgent board meeting to consider its options.
"In the absence of any viable alternative, it expects to implement an alternative deleveraging transaction, which is likely to involve the company making an application for administration and, if the order is granted, the immediate sale of the company's business and assets (i.e. the entire group) to a newly-incorporated company, to be owned by the existing lenders."
Interserve employs around 45,000 across the UK.
After shareholders rejected its rescue plan, it has lined up EY to complete its administration. It will then fall into the hands of its creditors.
Banks would then sell off different parts of Interserve, but this is not expected to cause any disruption to ongoing projects. The firm has said that the administration and sale is expected to be completed on Friday evening and the business will continue to operate "as normal for customers and suppliers".
The move will also prevent Interserve from sliding into a Carillion-style collapse.
A Cabinet Office spokesman said: "This announcement will not affect jobs or the provision of public services delivered by Interserve.
"We are in close contact with the company and we are confident a positive way forward will be found."
Hull's £12m bridge
Hull’s Castle Street bridge is expected to be completed in early 2020.
Designed to be used by pedestrians, cyclists and the disabled, the bridge will provide safe access to both sides of the A63 , which carries around 54,000 vehicles a day.
It comes as part of a wider project to improve traffic flow on Castle Street – widely known as being Hull’s busiest road.
Work is also underway on a £6m improvement scheme to the roundabout on Roger Millward Way, close to Victoria Docks.
An extra lane will be added through the middle of the existing roundabout, while extra traffic lights will reduce congestion and smooth the flow of traffic.
Both schemes will be completed in advance of the wider £250m A63 Castle Street project, which will improve access to the port and city centre.
Follow Hull Live
Our daily newsletter - To get the latest headlines direct to your email inbox every day, click here .
Follow us on Instagram - On the Hull Live Instagram page we share gorgeous pictures of our stunning city - and if you tag us in your posts, we could repost your picture on our page! We also put the latest news in our Instagram Stories. Click here to follow Hull Live on Instagram .