Nürburgring GmbH, the 90 percent state-owned company that owns the world-famous race track, has announced that it will file for bankruptcy in a German court this week.
The company that runs the Nürburgring race circuit owes the Rhineland-Palatinate bank around €413 million for redevelopment of the circuit, which occurred in 2009 after facilities were expanded with a new entertainment center and roller coaster.
With assets totaling around €126 million, Nürburgring GmbH is reportedly unable to service this debt, but the company has one last lifeline in the form of an application to the European Union’s Executive Commission for an emergency loan of £10 million to cover interest repayments. If this is denied, which is the expected outcome, administrators will be appointed and the company will be declared insolvent.
Nürburgring GmbH has announced that the 2012 season will “probably” go on as planned. However, whether or not the track will continue to hold races in 2013 will be decided by the court-appointed bankruptcy administrators. Apart from endurance races of all kinds, the track also hosts a big annual rock festival called Rock am Ring.
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