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Nurburgring filing for insolvency

2012-07-19 07:10

FRANKFURT, Germany - The owner of the Nurburgring race track is to file for insolvency, the German state of Rhineland-Palatinate has announced.

It blamed the European Commission for taking too long to approve a rescue package.

Nuerburgring GmbH, 90%t owned by the state, ran into financial trouble amid a dispute with the track's operator over lease fees and Rhineland-Palatinate had sought to restructure the company with the help of bridging finance.

F1 FUTURE UNCERTAIN

"But at the end of last week, (the commission) indicated that it may not reach a positive decision on the application for aid before July 30," by which time Nurburgring GmbH will be unable to pay its bills, the state said.

The track hosts the German F1 GP every two years, alternating with Hockenheim, and is due to stage the race in 2013 but its future has appeared uncertain due to the dispute with track operator Nurburgring Automotive GmbH over lease fees.

Rhineland-Palatinate - under pressure to make the track pay after pouring millions of euros into a racing-themed amusement park there - said earlier in 2012 that it was cancelling its lease with NAG, just as the company held talks with F1's chief Bernie Ecclestone over a deal to host the 2013 GP.

However NAG said on Wednesday it had agreed on a concept with Ecclestone and was seeking to win commitments for the annual rock festival Rock am Ring and the ADAC Truck GP for coming years.

The track is also used by automakers, among them BMW and Toyota, to test cars.

Reuters