The share price collapse of Shoreham airport's owner has raised fears that a new firm could step in and resurrect plans for a huge expansion.

Erinaceous has seen almost £400 million wiped off its share price in less than two years, casting massive doubts about its long term ownership of the airport.

If the property firm is forced to give up the airport, which financial experts have told The Argus now looks increasingly likely, a new owner could be in place within weeks.

Neil Parkin, leader of Adur District Council told The Argus: "We are concerned about it because any time there is uncertainty it's usually accompanied by concern.

"If it's going to be taken over what are (the new owners) going to do with it?

"Are they going to try and push the envelope? If they want to try and turn it into a second Gatwick they can forget it."

Mr Parkin said his council would keep a "watching brief" on developments in the days ahead.

He said the council's main concern, as the planning authority for the airport, was to ensure the site did not become overdeveloped and that people living in the area were not forced to endure extra noise or environmental pollution.

Worthing and Brighton and Hove councils, which jointly owned the airport before its privatisation have been alerted to the precarious position of Erinaceous.

Both authorities have confirmed they have banked full payment for the airport following its sale in 2006.

However the near collapse of Erinaceous has led to the possibility of both authorities having to re-take ownership of the airport - at least for a short time.

Councillors have told The Argus the site could fall back into public ownership if the firm is forced into administration or goes bust entirely before a new owner is found.

Worthing borough councillor Bob Smytherman, who has held talks with the joint chief executive of Worthing and Adur councils, Ian Lowrie, on the issue, said that scenario worried him because it could potentially burden taxpayers.

He said: "Worthing Borough Council should not be running airports any more.

"As I understand if Erinaceous can't afford the development plans then the council may well be able to sell the site to someone else who can."

Erinaceous saw its share price plunge a further ten per cent during trading on Friday. It is now priced at shade over 1p a share.

Sources have told The Argus they believe a buyer for the airport is "waiting in the wings".

However Erinaceous has been unable to comment on the issue.

It's last statement made to the London Stock Exchange only confirmed that new funding had been obtained from banks but conceded its shares are "unlikely" to hold any value in the future.

Could Shoreham cope with a "second Gatwick"? Have your say below.