Lancsville Construction is in talks that could lead to it losing its place on a £28m scheme in Croydon

Separate sources said the contractor was discussing its future on the Iylo residential skyscraper with developer Phoenix Logistics, and that a decision was due by the second week in January. The talks follow continued rumours of late payment of subcontractors.

About 77 county court judgments (CCJs) totalling more than £1.1m have been filed against Lancsville since May. Its finance director, Gordon Wright, told ºÚ¶´ÉçÇø in October the issue of CCJs was being dealt with. The firm is understood to be in the process of a refinancing deal.

Lancsville was unavailable for comment.