CREDITORS of a stricken heritage railway have been called to a meeting which could set it on course for an Easter reopening.

More than a year after the last trains ran on the Weardale Railway, in County Durham, the 104 businesses owed a total of £900,000 are being asked to accept proposals from administrators PricewaterhouseCoopers (PWC) which would pay them 25p for every £1 they are owed.

All creditors must agree to a Company Voluntary Arrange- ment, which would clear the way for new operators to take over the railway with a fresh board of directors.

Representatives of the businesses have already accepted the deal, asking for safeguards over the future of assets owned by the line, which will be run by the Ealing Community Transport Group supported by volunteers from the Weardale Railway Trust.

Ian Green, joint administrator with Steve Ellis and a PWC partner, said: "We and Dickinson Dees, the adminstrators' legal advisors, have worked very hard to formulate a proposal that provides the creditors with the opportunity to receive a substantially higher dividend than an alternative solution would have delivered.

He said the arrangement would also allow the railway to continue to operate, benefiting the local community.

Kevin Hillary, chairman of the Weardale Railway Trust, said: "This is the most positive news we have had during a very troubled year. I would like to thank the creditors, many of them local businesses, for the patience and understanding they have shown.

"Along with the many volunteers who have continued to support the Weardale Railway, they have proved a lifeline for the project.

"This is a crucial meeting, which we can only hope will ensure that the railway becomes a key player in the regeneration of Weardale."

The railway ran successfully between Stanhope and Wolsingham from July to December 2004, attracting thousands of visitors to Weardale in the wake of business closures and foot-and-mouth.