Llangollen Railway

A very reasonable opinion, but if the alternative were that the line closed because the Trust cannot afford whatever is essential to keep it going then they're caught between a rock and a hard place.

 

It would be naïve to have assumed otherwise - they have duties to the creditors and those creditors will have a view towards when they want paying.

 

According to Wiki, the Trust owns:

HC 1731/1942 0-6-0ST Jennifer

GWR 7754

Kitson 5459/1932 0-6-0ST Austin No1 - is noted as owned by Llangollen Railway so it is a little unclear if this is owned by the Trust or the PLC

 

I'm sure Austin No. 1 is owned by the Trust, it was their very first acquisition. It would make sense to sell off the two industrial locos as they hardly ever run at Llangollen and it is likely that the hire income they generate will be little more than the cost of maintaining them - why bother with the hassle of keeping track of their maintenance for little benefit to the railway?

 

WOT!? More appealing than a Kitson 0-6-0ST? Never.

 

I highly doubt that 7754 would be going anywhere!!!!

Both that and 5532 are surely the priority in getting back working.
I have been told that 6430 and both the auto coaches (owned by the same person) are also now leaving.

 

The railway will need the mk1 at least one full set with a few spares any more than two steam loco is a luxury they have the DMUs

 

Unfortunately for the railway, 'need' is not the same as being able to save.
Pat

 

They have no choice but to sell at market value.
What it comes down to is how much the plc owed to the bank (loans + overdraft) , what claims are submitted by other creditors, & what the easiest asset sales are to cover them.

Easily movable & sold assets will likely go first, so stock, machine tools, materials etc. Carriages before locos. (A loco may sell for a lot more, but take much longer to sell)
Track is unlikely to have any value, as it would need removing by the buyer, & there may not be anyone willing to even bid on it anyway.

They will also be chasing any monies owed to the plc.


As for the Trust selling assets to raise funds, they should check their paperwork very carefully. As a registered Charity, there are obligations placed on them when selling assets/property, & there may be restrictions on who assets can be sold to.

 

"Market Value" is an interesting phrase - what *is* the market value for things? Mark 1 coaches can obviously command a high price, but what about, say, a small wooden wagon, a brake van, a box van etc. I've seen ludicrous prices, I've seen bargain prices in recent past...

 

In those instances, market value is surely just the highest price you get on the day, without the luxury of picking a preferred buyer, who might be more inclined to keep it at the railway but has a smaller purchasing budget.

 

The agents will look at previous public sales records & come up with a value. They'll also look at what it was valued at on the plc books, & what it was bought for.
Ultimately it's what it sells for in a sales/bidding process, as long as they get more than a reserve value.

 

The sales notice is up
https://www.lsh.co.uk/assetadvisory/business-sales/llangollen-railway-plc

No asset listing, but there are some images
https://www.lsh.co.uk/-/media/flyer-template---llangollen-railway.ashx

 

One needs to sign the non disclosure agreement it seems before you can see a list of assets.

 

Could someone with more business knowledge explain what is meant by the bit in bold: "A unique and rare opportunity to purchase the operating and engineering assets, together with the business potential of a prestigious heritage railway."

To me that reads as though they are selling some kind of right to operate, or am I reading it the wrong way?

 

With only 6 days left it doesn't give the Trust much time to raise funds by selling off any assets that can be spared. ISTR that 7754 was owned by the National Museum of Wales and then donated to the Trust, likewise wasn't Austin 1 also donated to the charity? Hopefully there will now be an increase in the rate at which donations come in as they seemed to have slowed down recently.
Ray.

 

.... "Jennifer" was donated too, albeit by an individual.