A SCHOOL rebuilding programme in Wirral was in fresh jeopardy last night after contractor Jarvis admitted it was fighting for survival.

The company, which has already faced widespread criticism over delays to the £55m programme for nine schools, said it would run out of cash before the end of January if it failed to agree a refinancing package with lenders.

Jarvis, which is £230m in debt, said in a statement: "If such support were not forthcoming, the group would be unable to continue to trade."

The company was signed up on a private finance initiative (PFI) to carry out work on nine schools in Wirral, but left some pupils with extended holidays after failing to finish classrooms.

The programme was due to be completed in December 2003, but is now scheduled for completion by August next year.

However, Wirral's cabinet member for education Phil Davies said further delays would be likely if Jarvis was to go bust.

He said: "If that were to happen then the contract with them would obviously be terminated and we would presumably then have to enter into a contract with another company to get the work finished.

"Our main concern is that if we have to start the tender process again from scratch then that would almost certainly take us into a new school year and cause further disruption." Wirral Council would not lose any money as the risk in any PFI contract rests with the company and its backers, but it may face the drawn out process of finding a company to finish the work.

The authority's biggest concern is with South Wirral High School, Wirral Girls Grammar, Prenton High School for Girls and Hilbre High School for Girls where extensive work still needs to be done.

Cllr Davies added: "Our hope is that Jarvis will stick around to do the job but if they don't then it is these schools that give us the biggest cause for concern."

Jarvis is currently looking at other measures in a bid to raise cash.

Property sales worth £25m are part of the overhaul, although the group said the failure of shareholders to back deals announced could have a materially adverse effect on its ability to continue to trade.

The group said one of the major problems facing it had been that cash flow pressures were affecting terms of business with sub-contractors and having an impact on the company's ability to meet deadlines and cost targets.

Chief executive Alan Lovell, who took the helm in October, said the proposed property disposals marked "a very important step in our strategy".

tonymcdonough@dailypost.co.uk