Post by Roadhog on Jul 9, 2009 22:27:17 GMT 12
The 125-year-old Kingston Flyer is likely to be shut down indefinitely, with the director blaming financiers for blocking the sale of the train to a United States company.
Kingston Acquisitions put the 125-year-old train up for sale in November in an attempt to repay about $4.7 million in overdue loans to Prudential Mortgage Nominees.
However, director Robbie Caldwell said the Flyer operation was likely to be shut down after Prudential Mortgage blocked two offers by US-based company Railmark to buy the train.
With mounting debt, there was no money to open for the tourist season in October and if the operation shut down the Flyer would probably never run again, he said.
Mr Caldwell said he first received an offer from Railmark to buy the train and track land in February for between $2.25 million and $2.5 million. Railmark agreed to keep the train in Kingston along with all staff and planned to expand the business, he said.
Neither that offer nor a subsequent offer to buy two related companies that leased the inn and train were approved by Prudential Mortgage.
Mr Caldwell said Prudential Mortgage had said it would settle for nothing less than a 100 per cent debt clearance but he believed this was unrealistic in the present climate. Kingston Acquisition was set up by developer Dan McEwan, who went bankrupt in March reportedly owing investors $100 million.
Mr Caldwell, who took over directorship when Mr McEwan went bankrupt, said he and other investors poured $4.4 million into Mr McEwan's vision but would never see their money again.
"KAL (Kingston Acquisitions Ltd) is finished, investors will not get their money back ... but we're trying to save the train," he said.
Railmark chief executive Allen Brown said yesterday he was interested in the Kingston Flyer but Prudential Mortgage had tied his hands. "It was the highest offer they received to date or are likely to receive," he said.
Prudential Mortgage Nominees director George Jones would not comment on why the sale of the Kingston Flyer had not been approved.
"We can't comment on clients' personal transactions," he said.
He would not comment on whether Kingston Acquisitions would be placed into receivership if it continued to default on loans.
Bit of a bastard!!! Maybe an incorporated society could take it over, similar to the Glenbrook, Goldfields and Weka Pass operations, all of whom have very similar operating systems and clientelle to the Kingston operation
Kingston Acquisitions put the 125-year-old train up for sale in November in an attempt to repay about $4.7 million in overdue loans to Prudential Mortgage Nominees.
However, director Robbie Caldwell said the Flyer operation was likely to be shut down after Prudential Mortgage blocked two offers by US-based company Railmark to buy the train.
With mounting debt, there was no money to open for the tourist season in October and if the operation shut down the Flyer would probably never run again, he said.
Mr Caldwell said he first received an offer from Railmark to buy the train and track land in February for between $2.25 million and $2.5 million. Railmark agreed to keep the train in Kingston along with all staff and planned to expand the business, he said.
Neither that offer nor a subsequent offer to buy two related companies that leased the inn and train were approved by Prudential Mortgage.
Mr Caldwell said Prudential Mortgage had said it would settle for nothing less than a 100 per cent debt clearance but he believed this was unrealistic in the present climate. Kingston Acquisition was set up by developer Dan McEwan, who went bankrupt in March reportedly owing investors $100 million.
Mr Caldwell, who took over directorship when Mr McEwan went bankrupt, said he and other investors poured $4.4 million into Mr McEwan's vision but would never see their money again.
"KAL (Kingston Acquisitions Ltd) is finished, investors will not get their money back ... but we're trying to save the train," he said.
Railmark chief executive Allen Brown said yesterday he was interested in the Kingston Flyer but Prudential Mortgage had tied his hands. "It was the highest offer they received to date or are likely to receive," he said.
Prudential Mortgage Nominees director George Jones would not comment on why the sale of the Kingston Flyer had not been approved.
"We can't comment on clients' personal transactions," he said.
He would not comment on whether Kingston Acquisitions would be placed into receivership if it continued to default on loans.
Bit of a bastard!!! Maybe an incorporated society could take it over, similar to the Glenbrook, Goldfields and Weka Pass operations, all of whom have very similar operating systems and clientelle to the Kingston operation
