Is THE NURBURGRING ABOUT TO GO BANKRUPT?
The Nurburgring looks likely to go into administration after the European Commission ruled that a planned 13 million euro German government bailout constituted illegal state aid.
This judgement, along with a refusal to allow the Nurburgring’s holding company to defer interest payments on the 330 million euros it already has on loan from a state-owned investment bank will inevitably tip the track into bankruptcy.
According to German regional newspaper Rhein-Zeitung, this means that the state government is no longer in control of the 'ring and thus the holding company will have no choice but to enter receivership. On top of the ongoing investigation into the suspected 524 million euros of ‘unauthorised’ aid, this casts serious doubt on the future of the iconic racetrack.
The paper does suggest, however, that the current racing season will continue as planned. What happens after that is far less certain.
The 2013 German GP, scheduled to be held at the Nurburgring’s GP circuit, could even move to Hockenheim. Speaking to German motorsport blog Speedweek.de, Hockenheim boss Georg Seiler said (and please excuse our clunky Google translation): “We currently have no request to host the Grand Prix Germany in 2013, but I do see the possibility that F1 will come back every year to Hockenheim.”
Source:
Is the Nurburgring about to go bankrupt? - PistonHeads UK
Let’s hope EU can get their act together and 'Ring can get it’s finances straight.
from what i read somewhere else it isn’t really the ring that is in trouble but the people who currently lease it, who are the ones that ran it to shit, and that if it goes bankrupt that it would go back to state owned. idk how much truth there is to that and no i don’t have a source.
God if I was a billionaire Id own it!
Check out Save the Ring on facebook. This has been ongoing for about the last 3 to 4 years. I believe I read too it wil go back to state owned. Currently I think its leased out to a branch of Disney? Don’t quote me on that though.
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Nurburgring GMbH is the current holding company.
http://en.espnf1.com/germany/motorsport/story/84337.html
The future of the Nurburgring is in doubt after the circuit owners were denied a €13 million subsidy from the European Commission.
Reports in the German media claim that the circuit’s holding company - Nurburgring GMbH - is now on the brink of administration. Nurburgring GMbH owes the Rhineland Palatinate state bank over €300m as a result of the redevelopment of the circuit in 2009 but Ernst & Young have valued the facility at just €126m.
Should the company go in to administration, then the administrators would become responsible for all existing contracts - including the German Grand Prix which it hosts alternately with Hockenheim.
Previously, Hockenheim has said that it could not permanently host the race, but managing director Georg Seiler has said that the circuit is now in a position to do so if required.
“At present there is no request,” Seiler told Auto Motor und Sport. “But if there is one, I do see a possibility that F1 comes back every year at Hockenheim. But then everything would have to agree: the cost side, the contract, the policy and much more. I do not know if this is all so easy to fulfil. Still, we would be happy if we would continue the alternation.”
The Nurburgring looks likely to go into administration after the European Commission ruled that a planned 13 million euro German government bailout constituted illegal state aid.
This judgement, along with a refusal to allow the Nurburgring’s holding company to defer interest payments on the 330 million euros it already has on loan from a state-owned investment bank will inevitably tip the track into bankruptcy.
Reports in the German media claim that the circuit’s holding company - Nurburgring GMbH - is now on the brink of administration. Nurburgring GMbH owes the Rhineland Palatinate state bank over €300m as a result of the redevelopment of the circuit in 2009 but Ernst & Young have valued the facility at just €126m.
This is exactly what happens when use the money that you don’t have and turn a racing circuit into Disneyland that one one goes.
yea the people that currently own it are morons.
Shift fund to buy nurburgring? I got 100…