All 'Flyer' tenders rejected but two bidders still hopeful

Two parties hoping to buy the Kingston Flyer historic steam train business remain hopeful they can secure ownership despite all of the tenders being rejected by the mortgagee.

The train ceased operations this year and its owner, Kingston Acquisitions Ltd, was placed into receivership early last month by Prudential Mortgage Nominees.

The receivers, Malloch McClean, put the assets up for sale by international tender with Bayleys Queenstown.

The assets include the train, track, station buildings and nearly 80ha of land.

Bayleys Queenstown sales consultant Barry Robertson said seven tenders had been received.

"None were acceptable to the mortgagee. There's been some confusion over ownership of the leases, carriages and plant. The receiver will be taking legal steps to clarify the issues and talking to the tenderers again," he said.

He declined to reveal the amount of the highest tender.

An Invercargill-based charitable trust put in a tender for $2 million.

Southern F Locomotive Trust spokesman Karl Barkley said he would be continuing to raise funds to buy the train.

"Hopefully, we can start negotiating with the receivers. It's not unachieveable. Our trust now needs to go full steam ahead and raise funds. If 25,000 Kiwis can donate $100 we can do it."

Mr Robertson had told him he would be in touch in January with an updated list of property, plant and equipment once the issues around leases and ownership of chattels had been resolved.

Mr Barkley said he understood the train's previous operators, Kingston Flyer Steamtrain Ltd, owned a 35-year lease for the business. United States-based company Railmark had two previous offers for the train rejected by Prudential.

Chief executive Allen Brown said he was still "extremely interested" in the Kingston Flyer and was hoping to visit New Zealand in January.

"We are dealing directly with the receiver. I'm hopeful that our proposal will be accepted and believe it is a win-win for all the stakeholders involved," he said.