After their unsuccessful bid to the Big Lottery Fund, the company has been left with substantial debts and no assets.
Council leader, Hugh Hunter, told the Gazette: "They (GCDL) applied to the Council for funding to enable them to come to an arrangement with their creditors to settle their debts.
"After careful consideration members of the Leadership Panel took the view that this would not be an appropriate use of public funds and rejected the application."
The news was not greeted well in Girvan last week and community councillor Jean Irvine wrote a letter to South Ayrshire Council saying she was disgusted with their decision.
She said: "I attended a conference on Thursday, June 19th and heard how South Ayrshire Council was determind to involve communities.
"South Ayrshire Council would be supporting community and voluntary groups in the community working to improve their communitites.
"With a chance to prove you meant what you were all saying, what happens? You turn a deaf ear and ignore the work done and the wishes of the community of Girvan.
"As a community councillor I feel we are wasting our time. We were elected to serve our community. If SAC are going to thwart our efforts at every turn then what is the point."
However, Councillor Hunter was keen to stress that County Buildings is not turning their back on the town and pointed out that they have backed a number of projects which would bring investment into the South Carrick area.
He continued: "The Council is positively supporting the people of Girvan and surrounding area. One of the many ways in which it is doing this is by working on a groundbreaking project that will help the area to prosper in future years.
"A funding application has been made to the Sailwest Project, part of a European programme that, if successful, will bring great economic benefits to the Carrick area.
"The visionary project would see parts of the Carrick area transformed. There are plans to create 29 extra pontoon berths at Girvan Harbour at a cost of £400,000. That idea would be jointly funded with £50,000 coming from South Ayrshire Council, £300,000 from the European Regional Development Fund and £50,000 from Scottish Enterprise.
"A feasibility study is also being carried out into the possibility of creating a marina in Maidens. Together these projects would create outstanding sailing facilities in the Carrick area that would attract sailors from all over Scotland and beyond."
The Council Leader believes the income from berthing fees and potential revenue local shops could make as sailors shop for provisions would boost the local economy and create a number of new jobs in the area.
He added: "The Council is also leading the Ayrshire Rural Development Strategy and LEADER Funding Bid that will bring major benefits to the Carrick area.
"The project is all about supporting community based organisations, empowering and supporting them to address rural development needs identified by them.
"This will help to revitalise rural communities by stengthening their facilities and services, improving participation by young people and supporting economic and environmental actions linked to tourism and leisure."