An Oxfordshire classic car dealer has been asked to find a buyer for world famous steam locomotive Flying Scotsman.

The historic locomotive may be sold abroad by Malcolm Elder, of Steeple Aston, near Bicester, for more than £2m.

The company which owns the engine, The Flying Scotsman plc, had ambitious plans to market the brand, including the construction of a Flying Scotsman Village in Edinburgh.

Shareholders were told at the annual meeting that the company had losses of £474,619 and only had enough money to keep trading until April. Its shares were suspended in November.

The principal shareholder is Dr Tony Marchington, founder of early Oxford University spin-off drug discovery company Oxford Molecular, who bought the loco for £1.25m in 1996. He ordered a £1m overhaul, completed a year later.

Dr Marchington was declared bankrupt last September.

The company's chief executive is former Milton Keynes MP, Oxford solicitor and Oxfordshire county councillor Peter Butler. A classic car enthusiast himself, he has asked Mr Elder to canvass wealthy clients about a possible purchase of the loco.

Spokesman Geoff Courtney said: "We would certainly listen to realistic offers. The accounts show the Flying Scotsman is valued at more than £2m."

Mr Elder said: "We have had some interest but I can't say yet whether they are from people with money. The value is far higher than just the locomotive.

"The locomotive represents the least used but best known brand name in the world. There could be Flying Scotsman whisky, Flying Scotsman winterwear, all sorts of things."

Flying Scotsman has been associated with the financial ruin of two millionaires and has caused a third partnership to haemorrhage cash.

As well as Dr Marchington, the locomotive has been associated with the financial ruin of ex-owner Alan Pegler and proved a financial headache for construction tycoon Sir William McAlpine and music producer Pete Waterman. It is undergoing an overhaul but is due to run again next month.