US firm makes third bid for Kingston Flyer

BEN HEATHER/ The Southland Times

OUT OF STEAM: Former Kingston Flyer staff Paula and Ken McAuliffe in front of one of two engines used on the historical train.

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United States company Railmark hopes it will be third time lucky as it bids again to buy the troubled Kingston Flyer.

Railmark chief executive Allen Brown said he would bid for the historic train, tracks, associated buildings and development land in Kingston, about 35 kilometres south of Queenstown.

Kingston Acquisitions (KAL) repeatedly tried and failed to sell the train to meet growing debt.

With no money left the train closed for summer. All staff lost their jobs.

This month, KAL was placed into receivership, owing financier Prudential Mortgage Nominees $4.7 million.

Railmark has previously tried to bid for the train twice, but was blocked by Prudential. Now the receiver is selling the train.

Mr Brown said he hoped the third offer would be accepted.

The Mississippi-based freight and rail entertainment company's last offer to buy the train is understood to have been about $2.5m but did not include the development land, which was last valued at $3.2m.

Mr Brown said the latest offer for the train would be less because it was no longer an operating business.

If its bid was successful, Railmark would re-hire former employees and aim to increase passenger numbers.

- © Fairfax NZ News