"I've got a team of lawyers working on it and I would hope something would be resolved in the next two months," Michigan-based Railmark Holdings Incorporated chief executive and majority shareholder Allen Brown told the Otago Daily Times by phone from the US yesterday.
In May last year, the company announced the formation of Railmark New Zealand to manage its rail and rail logistics operations here, in Australia and in South America.
"Railmark is looking forward to delivering its retail train operations and programming and becoming an integral part of the New Zealand tourist industry," the company's mission statement reads.
Although he hoped to make an announcement soon Mr Brown said he could not comment further as he did not want to jeopardise the deal.
Kingston Flyer parent company Kingston Acquisitions Ltd (KAL) went into receivership in November 2009.
A month later, the company's assets, including two locomotives, rolling stock and 14km of track were unsuccessfully put up for sale with no tenders received that were "acceptable."
KAL still owes $4.7 million plus outstanding interest to Christchurch-based mortgagees Prudential Mortgage.
In his half-yearly report released last month KAL receiver Lindsay McClean, of Invercargill accountancy firm Malloch McClean, said unsecured creditors owed about $160,000 will probably never be repaid.
"It is my view that it is unlikely that there will be any funds available for unsecured creditors," Mr McClean said.
When asked if he was any closer to finding a buyer for the railway he said he could not comment.
However, in the report he said "negotiations with interested parties are continuing".
In November Karl Barkley, chairman of the Kingston Flyer Southern F Locomotive Trust, criticised Prudential and the receiver for courting Railmark.
Railmark New Zealand Ltd is listed on the Companies Office website with two directors: Mr Brown, and Railmark's Ashburton-based director of international business development Jim Collins, also a US citizen.
"Is this so it doesn't attract overseas investment status, therefore staying under the radar?" Mr Barkley said, questioning the motives for setting up the company in New Zealand.
Yesterday, he said the trust was still "actively keen" to buy the Flyer and had raised $55,000 towards the $1 million price tag he said was quoted to him by Prudential.
"If Kiwis want to keep this as a Kiwi icon they need to get in behind or we'll lose it to a Yank," Mr Barkley said.
