GRACE'S Place children's hospice says it is debt-free and back on track — after a £150,000 donation from a construction firm.

The hospice, based at the old Bury Hospice site in Radcliffe, had been due to open in 2014 but suffered a number of severe setbacks, falling into £359,000 of debt.

Among its liabilities was more than £270,000 owed to Seddon, who undertook the alteration and refurbishment of the Dumers Lane facility.

However, the Bolton-based firm has now agreed to donate the outstanding balance that was owed to it for the building work, meaning the hospice can finally take significant steps towards opening.

A spokesman for the Grace's Place trustees said: “Establishing a charity from scratch is incredibly difficult, especially during these troubled financial times.

"We have worked tirelessly to resolve the issues and reduced the debt through a number of means including VAT recovery.

"Public donations have been completely protected.

“Now that Seddon has kindly donated the outstanding balance owed for the building works, we can finally move forward.

"There are many children with a life limiting illness who live nearby but are having to travel far and wide to receive the treatment and care they need. This was the reason for starting Grace’s Place in the first place.

“We would like to thank our supporters, partners and especially Seddon for working with us during this difficult time and continuing to believe in what we are trying to do.”

A further announcement on the children's hospice's future is expected in the coming weeks, after business consultants Grant Thornton was commissioned to produce a revised business plan for the charity.

The Grace’s Place charity was set up in 2013 as part of a partnership between Bury Hospice and Pennine Care NHS Foundation Trust. It is managed independently by three trustees – Cllr Joan Grimshaw, Christine Joyce and John Schofield.

Most of the work to convert the building, after Bury Hospice moved to its new base in Rochdale Old Road, was paid for with a £507,000 grant received by Bury Hospice from the Department of Health.

Keith Waddington, director of Seddon, commented: “Providing children with life limiting illnesses in Bury and the surrounding areas with this vital care facility was the most important thing for us.

“We’re pleased to have achieved a resolution so that Grace’s Place can begin to provide the region’s young people with a high quality, comfortable environment.”

Last year, a probe was launched to determine the future of Grace's Place once and for all, at the same time as an independent inquiry into Bury Hospice's troubles was also completed.

There were four possible options being considered for the children's hospice at the time: open Grace's Place as an independent organisation, open it in partnership with Bury Hospice, allow an established children's hospice to open it, or declare the building unfeasible as a children's hospice and use it for something else related to healthcare.

Key supporters of the Grace's Place project have included Ivan Lewis MP and radio presenter Sara Cox.