Mr Windsor’s office received the bill for Grace Munro Aged Care Centre Ltd after it took over the running of the Grace Munro Centre from McLean.

McLean CEO Mark Mudge said they had lost $600,000 to keep the centre open.

The withdrawal of the account means residents of the Bundarra Grace Munro Centre will be able to stay in their riverside home debt free.

This would not have been possible if that debt had to be paid.

New England MP Tony Windsor said he was not surprised about McLean’s backdown.

“When the original cost for the 90-day extension was discussed it was expected to cost Grace Munro $30,000,” Mr Windsor said.

“The cost was ridiculous to begin with because at that stage the Grace Munro Company didn’t even exist, it was just a community committee.

“The original cost was outrageous then the figure increased to $238,000 which was unbelievable,” he said.

The first stage of the Grace Munro Aged Care Ltd taking over from McLean management was achieved after the company received an ‘Approved Provider’ status.

However such a large debt looming over the company would have hindered them in achieving the next stage of the takeover, the official transfer from McLean to Grace Munro Aged Care Ltd.

The withdrawal of the $238,000 debt is a huge relief for both Grace Munro and its residents.

“It was very stressful for the residents of the centre to think they would need to move,” Mr Windsor said. “It is also very stressful for Grace Munro residents and members of the Bundarra community to have to contemplate such a large amount of money owing.”

It appears McLean issuing the extreme account, only to withdraw it a short time later has lead to a lot of unnecessary pressure and anxiety.

Mr Windsor and locals believe while the Bundarra facility is running and beds are available the centre has the potential to run at a profit and should never have been considered for closure in the first place. Legal action is now being considered and Mr Windsor said he would refer the issue to the appropriate authority for investigation.

Meanwhile, Mr Mudge said McLean had withdrawn the bill to allow the Bundarra aged care centre to continue to operate.

“We will not allow the debt to stand in the way of the community of Bundarra to gain approval to operate the Grace Munro Centre,” he said.