CONCERNS have been raised about the 'dreadful news' over the loss of a 'wonderful heritage railway'.

The Leader previously reported that Llangollen Railway's future has been cast into doubt after inviting the bank to appoint a receiver.

Amid mounting debts, the heritage railway says it has made the move as it "cannot legally continue to trade".

Commenting on the announcement that Llangollen Railway PLC have had to take the reluctant step of inviting the bank to appoint a receiver, North Wales MS Mark Isherwood, who has long championed the work of Llangollen Railway and worked with them over many years, said: “This is dreadful and concerning news about a wonderful heritage railway.

“The loss of this railway would not only be devastating for the army of volunteers who support it and the railway’s employees, but also for the wider visitor economy in Llangollen and throughout the Dee Valley.

“I have offered to assist the Railway in any way I can.”

The company’s accounts show pre-tax losses of £330,601 in 2018, £329,175 in 2019 and £258,804 in 2020 (pre-audit).

A statement released by Llangollen Railway PLC states that a number of "significant" engineering contract disputes, all of which arose in the years prior to the current board taking over in October 2020, have "crystallised" in the last few days.

The claims against the company are said to be "compelling" and are in excess of £250,000 in total. There is said to be no prospect of meeting these liabilities, even over an extended period.

The statement reads: "As a result the balance sheet is now insolvent to the extent of £350,000 approximately, adjusting for intangible assets also. In such circumstances the company cannot legally continue to trade.

"The directors would like to acknowledge the considerable support of the Welsh Government through two significant grants, and NatWest Bank which, together with furlough payments, have enabled the company to continue to meet its commitments over recent months until now.

"The Trust’s balance sheet remains solvent and there is some cash in hand. The Trust board will need to take steps to negotiate with the receiver to try to secure the line and preserve rolling stock and infrastructure to the extent possible. It is intended to recommence operations in due course but this is dependent upon legal and regulatory approvals, including licensing, all of which will clearly take time.

"The directors very much regret the impact this will have on our staff and employees, customers, suppliers, locomotive owners and their organisations, and anyone else with connections to the Railway. It is hoped to re-hire many of our staff and employees and that it will be possible to maintain connections with many longstanding friends."

Anyone wishing to make a claim in the receivership should contact the Railway by e-mail at commercial@llangollen-railway.co.uk and details will be passed to the receiver.

Anyone wishing to contact the Trust, please do so at the above e-mail address also.