GRACE'S Place children's hospice could be scrapped unless two debts are cancelled soon.

That is the fear of the charity's supporters, who have called a crisis meeting for tomorrow, which they have described as "make or break".

The facility, in Dumers Lane, Radcliffe, was due to open in the autumn of 2014, but the project has been plagued with financial and organisational chaos that senior sources now describe as "a complete and utter mess."

Bury South MP Ivan Lewis praised the current trustees for their efforts to rectify the problems, which were caused by unexpected renovation costs.

A newly released annual accounts document states that, as of November 30, 2014, the hospice was £359,317 in debt.

In the report, Grace's Place director Joan Grimshaw says: "The charity (ended the period) with an overspend position and has a significant outstanding debt.

"There are some difficult funding issue due to the high cost of the construction work and set-up costs, which were over the anticipated budget.

"The liabilities are being discussed with the creditors and the charity has had professional advice to assist in restructuring the debt."

Sources have told the Radcliffe Times that Grace's Place owes £300,000 to Seddon Construction, which helped refurbish the building.

A spokesman for Seddon Construction said the firm did not wish to comment, but would await the outcome of tomorrow's meeting with interest.

Grace's Place also owes a disputed figure — understood to be around £60,000 — to Bury Hospice.

Trustees are set to formally ask Seddon Construction and Bury Hospice to cancel the debt.

Bury South MP Ivan Lewis, who was called the meeting, said: "That is what needs to happen to give Grace's Place any realistic chance of ever opening.

"This is a make-or-break meeting for Grace's Place.

"It would be a tragedy and a betrayal of the community if this project was not able to go ahead."

Mr Lewis, who will attend the meeting with Grace's Place trustees, Bury Hospice leaders and bosses of NHS Bury Clinical Commissioning Group, added: "We are all frustrated at the stagnation of Grace’s Place and hope it can move forward.

"We all, in our community, share our passion and committing to having a children's hospice, but the problem is there are blockages in the way.

"This meeting is a serious attempt to get the key players around the table and to unblock those blocks and come up with a plan where we can get the hospice open.

"Mrs Grimshaw and the trustees of Grace's Place have done everything in their power to get the hospice off the ground. They deserve credit for sticking with it."

The land on which the build stands is owned by Pennine Care NHS Foundation Trust.

A source close to the project said: "Even if the debt was cleared, a business case for the hospice would have to be made for it to open.

"If that could not happen, the only other options are an established children's hospice coming into run a second facility or for it to be bulldozed and the land being used for something completely different."

A spokesman for Grace's Place trustees said: "Over the last six months, we have spent time reviewing the financial position of Grace's Place, including preparing the annual accounts.

"Now this work has been undertaken, we are in a better position to work with partners to determine what the options are moving forward.

"The first step of this involves a meeting between the trustees, partners, contractors and commissioners taking place on February 12."

It is understood that one bone of contention is the role of Bury Hospice, which entered into a partnership with Pennine Care to form Grace’s Place.

However, Bury Hospice has recently "disentangled" itself from Grace's Place.

The hospice's chief executive Jacqui Comber resigned as a Grace's Place trustee last May and the hospice withdrew admin support last week.

Bury Hospice acting chairman Margaret Lloyd said she would attend tomorrow's meeting.