Weardale Railway Community Interest Company (CIC) operated the 173-year-old Weardale Railway heritage line on 19 miles of track between Stanhope and Bishop Auckland in County Durham. The company’s American parent had become insolvent, and was unable to provide the financial support needed for the CIC to continue trading. It was able to fulfil its profitable Christmas train ride experiences, including its popular ‘Train to Christmas Town’, but ceased trading immediately afterwards as there were insufficient funds to pay ongoing expenses or historic debt.
FRP was appointed as Administrators by the Directors of Weardale Railway CIC shortly after it ceased trading. Working closely with independent agents specialising in the sector, our Restructuring Advisory team marketed the business and assets, resulting in a successful sale to the secured creditor – a subsidiary company of The Auckland Project. The Project is a regeneration charity focusing on creating positive change for those living, working and visiting Bishop Auckland and the surrounding area.
The team were able to negotiate a deal with the buyer which enabled the full settlement of the secured and preferential claims, as well as funds for a subsequent distribution to unsecured creditors. The deal also saved a number of jobs at Weardale CIC, and will ensure the heritage railway’s continued operation.
The deal saved a number of jobs at Weardale CIC, and will ensure the heritage railway’s continued operation.David Willis Restructuring Advisory