The firm overseeing England鈥檚 biggest school PFI contract is planning to “go into liquidation” with millions of pounds worth of building repairs work still outstanding. Transform Schools (Stoke) Ltd (TSSL) was responsible for maintaining 88 schools in Stoke-on-Trent built under a private finance initiative (PFI) contract, which ended on October 25. It is one of the first school contracts to end. But as of late August, 拢7.2 million of 鈥渉and-back works鈥 were still yet to be completed by the PFI company, Stoke council previously said. While the firm said 拢2.3 million of the works had been completed and just needed sign off, the council had stumped up 拢3.5 million of taxpayers鈥 cash to fill the void. However, in a letter to schools sent on Thursday and seen by Schools Week, the council said TSSL has engaged an insolvency practitioner and is 鈥渢aking steps to place the company into a creditors voluntary liquidation鈥. Work remains unfinished This means the firm鈥檚 directors have taken the decision to shut while a row over who stumps up for outstanding school repairs rages on. But in a statement the council said it has “planned for this scenario” and aims for all outstanding works to be completed. But this will be funded by “using a blend of remaining handback funds, other funding legitimately withheld from TSSL for non-delivery of contractual works, and the council鈥檚 own resources”. In the letter to schools, Stoke council chief executive, Jon Rouse, said TSSL had “a number of unpaid creditors (suppliers) for works provided to schools”. He added: 鈥淭he council understands that some of TSSL鈥檚 contractors may be left unpaid or part-paid, and that not all commenced works have been fully and satisfactorily completed. 鈥淭he council appreciates the concern that this may cause schools and it continues to engage with TSSL and its insolvency practitioner to discuss possible options available in respect of these, as well as with schools directly.鈥 The council said it had entered a 鈥渟upplemental agreement鈥 with TSSL in May to provide 鈥渁 back-stop period for works to be completed鈥. Council ‘has planned for scenario’ However Stoke said in September it would pay as much as 拢3.5 million to cover 鈥渆xtra costs caused by the impact of high inflation鈥 since hand-back condition surveys were carried out. Rouse added: 鈥淭he council would like to reiterate its commitment to ensuring that outstanding works that were a PFI responsibility are completed.鈥 A 鈥渟pecific helpline for creditors鈥 has been set up, and the council 鈥渨ill be working through these issues on a case-by-case basis鈥. A dedicated mailbox has also been set up. In a statement, a Stoke-on-Trent City Council spokesperson said: “First and foremost, we want to reassure schools and parents that we have planned for this scenario and our intention is to work jointly with schools to establish a final list of outstanding works and agree a clear position on responsibility, the nature of the work required and who is best to deliver this work. “We continue to hold the remaining PFI funds to be applied for this purpose, as well as the additional resources we have committed as a city council. 鈥淥ur commitment remains to deliver the best possible outcome and ensure that children in Stoke-on-Trent have safe, high-quality school environments.鈥 Vercity Management Services, listed as TSSL鈥檚 secretary on Companies House, has been approached for comment. PFI deals have been used to fund new school projects since the last 1990s. They involve private companies building and maintaining sites in exchange for mortgage-style payments, normally over 25-year contracts 鈥 which rise beyond inflation 鈥 before handing them over to taxpayers. But many contracts are now reaching expiry. Government data shows there are 219 active PFI contracts in education in the UK, more than any other sector. They will all expire in the next 17 years. The majority relate to schools in England, where there are 170. Of those, 43 are set to end in the next seven years. The Stoke case has raised wider concerns about whether councils are prepared for this. At the Education Estates conference last month, experts said schools, trusts and councils could face billions of pounds in unplanned maintenance costs as the contracts come to an end.