/ Motorsport

Nurburgring F1 venue in Germany faces insolvency threat due to €300m redevelopment debts

Updated: Wednesday, 18 Jul 2012 12:02 | Comments

The Nurburgring faces a 'high probability of insolvency'
The Nurburgring faces a 'high probability of insolvency'

The future of one of Germany's two Formula One grand prix venues is uncertain as the Nurburgring faces possible insolvency.

The news was confirmed today at a press conference in Mainz by Kurt Beck, state governor for the Rhineland-Palatinate area.

According to reports, Nurburgring GmbH, which operates the 90% state-owned circuit situated 56km of west Koblenz, owes the Rhineland-Palatinate bank around €300m for redevelopment in 2009.

Despite applying to the European Union's Executive Commission for an emergency loan of €12.7m to cover interest repayments, that is not expected to be granted.

In turn, that has forced the state to act, with Beck remarking there was now a "high probability of insolvency at the end of the month due to a lack of liquidity"

The Nurburgring stages the German Grand Prix on a rotational basis with Hockenheim, scene of this weekend's race.

However, the uncertainty surrounding the track would appear to put their hosting of next year's event in jeopardy.

Hockenheim's owners had previously suggested they could no longer afford to stage the grand prix on an annual basis.

Managing director Georg Seiler has now suggested, though, it could potentially do so if certain conditions were met.

Speaking to Auto Motor und Sport, Seiler said: "At present there is no request.

"But if there is one, I do see a possibility that F1 comes back every year at Hockenheim.

"But then everything would have to be agreed: 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."

User contributions and/or comments do not, unless specifically stated, represent the views of RTÉ.ie or RTÉ.
Click here for Terms of use
Live!
Powered by NewsWhip