INTERSERVE, the outsourcing firm responsible for two new Monmouthshire schools and Torfaen’s proposed sixth form centre, is set to go into administration.

The heavily indebted company, which holds contracts for projects across the UK, failed to secure backing from its investors following a crunch meeting on Friday.

Monmouthshire County Council appointed Interserve to deliver its £90 million new-build secondary schools in Caldicot and Monmouth, which have since opened.

Free Press Series: A look inside the new Monmouth Comprehensive SchoolA look inside the new Monmouth Comprehensive School

While the firm’s Caldicot contract has concluded, some of the work was not completed to council standards, with the demolition of old school buildings at Monmouth still outstanding.

Both projects have been mired with onsite issues including the discovery of unanticipated asbestos, with the contractor overspending its budgets by more than £1 million as of January.

Free Press Series: Parts of Caldicot School's former 'Castle' building being ripped down earlier this year. Pic: Paul RogersParts of Caldicot School's former 'Castle' building being ripped down earlier this year. Pic: Paul Rogers

“We are already working on contingency plans that would result in [the council] assuming responsibility for the demolition and the resolution of any outstanding defects,” said a spokesman for Monmouthshire council.

READ MOREAsbestos removal and extra build costs cause £1m overspend at new Caldicot and Monmouth schools

“The council is holding retention funds on both projects which would enable us to step with limited financial consequences.”

Meanwhile, Torfaen council has confirmed that Interserve holds the contracts to build its £28.4 million ‘super college’ in Cwmbran.

Coleg Gwent will be responsible for the 1,000-place school, which would replace sixth forms at Cwmbran High, St Albans RC High and Croesyceiliog School.

Free Press Series: A look at how the sixth form centre's could look from the insideA look at how the sixth form centre's could look from the inside

Costs have crept up from an initial £20 million estimate after a funding shortfall was found last July, prompting Torfaen council, Welsh Government and Coleg Gwent to plug the gap.

READ MORETorfaen sixth form centre costs increase by £4.6 million

A Torfaen council spokesman said: “We are closely monitoring the situation and have spoken with Interserve representatives today who informed us that site works will continue as per the agreed programme and contracts will continue as normal."

Newport, Blaenau Gwent and Caerphilly councils currently have no outstanding contracts with the company.

Interserve had bid for several projects in Blaenau Gwent but were unsuccessful, according to a council spokeswoman.

The company’s administration and sale to its lenders is expected to be completed imminently and the business will continue to operate "as normal for customers and suppliers".

More than 100,000 members of staff are employed across the world, with 45,000 based in the UK.