BLAIRHALL could lose out on �175,000 for community improvements after building firm Lomond Homes plunged into administration yesterday.

Professional services firm PwC confirmed they had appointed Graham Frost and Bruce Cartwright as joint administrators for the troubled firm.

Fife Council had given the company until Wednesday at 5pm to settle a �494,000 debt for developments in Blairhall and Lochgelly.

A statement from PwC said that the Fife-based house builder currently holds land in Fife and Clackmannanshire with planning permission for development.

But at the time of PwC's appointment the business had only one completed house, in Lochgelly, for sale.

Graham Frost, business recovery services director, said, "The directors have reduced the scale of the business in recent years to the extent that there are no employees and almost no construction activity being undertaken at present.

"Over the coming days we will review the position of the land bank with a view to realising value for creditors."

Lomond Homes are behind the Blairhall Castle housing development and as part of a Section 75 planning agreement are legally bound to make a financial or construction contribution to the community to help or improve the town.

Frustrated residents at the estate have set up a page on Facebook to outline their disgust with the lack of information about the missing money.

The chair of Blairhall community council has also stated her disappointment at the lack of information about the company.

Marion McGaughay said, "We just don't know the situation, we were hoping to get that money to help improve our playpark. There's been plenty of talk, but we still don't know where we stand."

Fife Council have been trying to recover the money they are owed from Lomond Homes for some time and have now been in touch with PwC to try and do this.

Eileen Rowand, head of revenue and exchequer services at Fife Council said, "The council has a statutory responsibility to protect public money and we will have to await the outcome of the administration to see what payment we will receive."