A TROUBLED rural railway heritage line, which opened only last summer, has been placed in the hands of administrators after cash flow difficulties left it unable to meet its financial obligations.

Following the devastation of foot-and-mouth disease and the demise of the local cement works, Weardale Railway Ltd appeared to herald a new era of prosperity for the dale when it was launched in a blaze of glory last July. But despite ferrying over 20,000 passengers on the five-mile stretch between Stanhope and Wolsingham, the venture has bowed to mounting financial pressure, handing over control to accountants PriceWaterhouseCoopers.

Earlier this week, a spokesman told the D&S Times that the railway company had received £1.4m of the £3.5m pledged in grants towards its projected cost of £5.5m, the bulk of that from the regional development agency, One NorthEast. But the rejection of its business plan by the other main funders had led to cash flow problems.

A revised plan was submitted, but this latest rejection left the company's directors with little option but to request the appointment of administrators.

Thirty of the line's 36 staff, including project manager Tony Greenup, were laid off immediately, with only depot workers kept on.

Joint administrator, Ian Green, said: "We will consult with Weardale's stakeholders, including its major creditors, to enable us to evaluate all the options available to the company, and as such, plans to restore the full length of line between Bishop Auckland and Eastgate have been put on hold."

A joint statement issued by One NorthEast and Durham County Council said funding partners backing the project had resolved to work with the administrators to decide its future.

The separate Weardale Railway Trust, which has membership of 1,000 and is still growing, has pledged its continued support.

* Spectator's Notes: page 20