Any new owner of the Kingston Flyer could find themselves unable to operate it as such, as the name is subject to a trademark agreement.
Tenders closed yesterday for the Kingston Flyer portfolio, which includes the train, more than 80ha of land and various assets.
The train was put up for sale last month after its owner, Kingston Acquisitions Ltd, was placed in receivership by Prudential Mortgagee Nominees.
The Otago Daily Times understands Phil Kerr, of the Kingston Flyer Steamtrain Ltd, has a 35-year lease on the train and its assets - and owns the trademarked "Kingston Flyer".
When contacted yesterday, Mr Kerr said he was unable to go into the terms of the lease agreement between the Kingston Flyer Steamtrain Ltd and the train's previous owner - Kingston Acquisitions Ltd.
He told the ODT he contacted the receivers, Malloch McClean, this week regarding the tender documents.
He had been surprised they did not disclose leases over the properties.
Receiver Lindsay McLean, of Malloch McLean, made no comment.
However, one Wellington-based charitable trust, which has lodged a tender for the category 1 protected steam train, said the name itself was worth money and if it could not be used, the asking price should reflect that.
Graham McCready, of National Mutual Trust Ltd's Computers for Schools Charitable Trust Board, said the trust lodged a tender, then found out about the trademark.
"It would be like you saying `I'm going to go and sell food and call it McDonald's' - you can't do it. You could call it the Kingston Cabbage Train and run it, but the brand in itself is worth money.
"You've got a defunct railroad, subject to a lease trademark owned by somebody else. . . they can't even advertise it as the Kingston Flyer."
If successful with its tender, the trust intends to get the train running again - and use it to benefit the community.
"Everybody's been arguing with each other and we don't want an argument. We just want to get it running so we can [put something back into the community]."
Mr McCready said the trust proposed to operate the train, establish a reserve fund and use the money to buy computers for schools around the area.
In May, the trust delivered 80 computers to a Mangere school which had been hit by vandals.
Bayleys sales consultant Barry Robertson said it would not be known how many tenders had been received for the portfolio until next week.
