The contact to develop the Lime Street area of Liverpool has been officially terminated after the company carrying out the work collapsed into administration.
Liverpool Council has made the move after NMCN entered administration earlier this month after failing to sign off its 2020 accounts and secure a re-financing of the business.
It had been hoped that a buyout may have allowed work to quickly re-start on the project, but the termination of the contract will now lead to several months of delays, .
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The project involves a major redesign of the iconic route, reducing it to a single lane of traffic in each direction, with more open space created in the area outside St George's Hall.
The redevelopment had been expected to be completed in December, but the termination of the contract will lead to several months of delays.
A three step process will now be implemented, with sub-contractors initially asked to make the site safe and secure.
A full assessment of the site will then be carried out by the council, which will inform a new tender process as a new contractor is sought to finish the scheme.
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That tender process could take four to six weeks to complete, with the remaining work on the job potentially lasting a similar length of time.
Council insiders said they believe that if things go to plan, the Lime Street project could be finished by March 2022 - but there could be further bumps in the road.
The collapse of NMCN has provided a moment for the council to reassess the scheme - which has faced plenty of criticism.
A spokesperson for Liverpool Council said: "Liverpool City Council has legally terminated the contract for the Lime Street development scheme, owing to the contractor, NMCN, going into administration.
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"The council's highways department has already begun the task of making the site safe.
"It will now seek to ensure Lime Street will be accessible as possible in the run up to the busy Christmas period for the city centre.
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"A full assessment of the site will now take place to establish what works are needed to complete the scheme.
"It is hoped the Lime Street development scheme will be completed before the start of spring 2022."