RAIL 2000's position as a private limited company means that any liability for debts would be restricted.

The law says that if such a company is put into liquidation or goes bankrupt, the owners - or shareholders - would be unlikely to be responsible for settling all the company's outstanding debts.

It was revealed yesterday that Rail 2000 had recorded pre-tax losses of about £83,000 for the 26-week trading period ending March 31, 1999.

Visitors to its registered Darlington office in St Cuthbert's Way were yesterday being turned away, while phone callers are met with a recorded message saying the telephone number is not in use.

Rail 2000 also had a base at the Wansbeck Business Park, Ashington, Northumberland, which it shared with Nirvana.

This address was where travel operators were required to write in order to purchase tickets.

However, it is understood that Rail 2000 left the offices three weeks ago and the locks have since been changed by Nirvana.

Last night, The Northern Echo spoke to Tyneside's Federation Breweries, which paid £100,000 in sponsorship towards Rail 2000's Cavalcade of Steam event.

Its marketing manager, Mike Berriman, said: "We are trying to make ourselves aware of all the facts before we can make any firm decisions as to what to do next."