THE company behind the failed Cavalcade of Steam event could face legal action from debtors seeking to recover their costs, The Northern Echo can reveal.

Rail 2000 announced last week that the much-heralded celebration of the North-East's historic railway links would not go ahead after a major backer pulled out.

Chairman David Champion has since been unavailable to field any questions about the collapse of the event.

Now a number of coach and tour operators, still owed thousands of pounds by Rail 2000 for tickets bought in bulk, are considering legal action.

Darlington Borough Council, which gave a loan of £25,000 towards the costs, has also indicated it may turn to the courts if it does not receive its money back.

Liz Wilcock, of Gloucestershire tour operator Travel-scope, said it had paid £17,000 to Rail 2000 for a tickets package catering for 720 people.

Mrs Wilcock said: "We have sent a letter to the company saying we will take legal action if the money we are owed is not paid within a certain time.

"We were under constant pressure to commit financially to Rail 2000."

Both official ticket agency Way Ahead and Ashington firm Nirvana, which acted as a ticket and accommodation bur-eau for the event, have pledged that individuals who bought tickets will receive refunds.

Ken Morris, managing director of Nirvana, said: "An awful lot of coach operators could lose a lot of money.

"Somebody at some stage has to take a look at what has happened here and ask some serious questions."

A spokeswoman at BKR Haines Watts, which acted as Rail 2000's accountants, said they had still to hear from the company's chairman David Champion.

She said: "At this stage, there is nothing that we can say until we speak to our client."