• Germany edition
 
Legendary Nürburgring track to go bankrupt
Photo: DPA

Legendary Nürburgring track to go bankrupt

Published: 18 Jul 2012 06:39 GMT+02:00
Updated: 18 Jul 2012 11:57 GMT+02:00

The Rhineland Palatinate government decided it had run out of options to try to save the Nürburgring firm on Wednesday morning – because a hoped-for rescue package from the European Commission seemed unlikely.

State Premier Kurt Beck said the €13 million that had been requested was not expected to be approved by July 31. Therefore, “with greatest probability, bankruptcy would be applied for, for the end of the month due to lack of liquidity,” he said.

He criticised the Commission, which he said had given out positive signals on the matter just a few days ago, but had then simply stopped dealing with the matter.

“Not deciding on a European level means a lack of power to act for Rhineland Palatinate,” he said.

The Rhein Zeitung newspaper said on Tuesday it had heard from good sources that the European Commission was not going to rescue the Nürburgring GmbH firm.

The Rhineland Palatinate state government had asked the Commission to pump €13 million into the firm as part of a rescue package which would also seee the firm would defer payment on a €330 million loan from a state-owned bank.

But European competition authorities refused to approve the plan and the firm which owns the track will now go into administration.

Administrators will then soon be responsible for all contracts, whether this be with Bernie Ecclestone for the Formula 1 races or with concert organiser Marek Lieberberg for the Rock am Ring festival.

European authorities are already in the midst of checking whether more than €500 million has been funnelled into the racetrack and leisure complex in contravention of competition rules.

The Rhein Zeitung said that tax payers should expect to pay heartily for the situation, as the entire complex is said to be only worth €126 million – according to a study compiled by Ernst & Young for the state.

The figures show the firm is €413 million in debt, including €330 million borrowed from the state-owned bank and €83 million to share-holders, the paper said. The state could end up sitting on debts of around €287 million.

The current season of events at the Ring will probably continue, but the future will depend on the administrators. They are obliged to get as much value out of the situation as possible for the creditors, the largest of which is the Rhineland Palatinate state.

The Local/hc

The Local (news@thelocal.de)

Your comments about this article

07:02 July 18, 2012 by aikaheimo
"This Sunday¦#39;s German Formula 1 Grand Prix is likely to be the last at the legendary Nürburgring " I have bought tickets to see F1 at Hockenheim this Sunday. Should I call the police now for fraud?
10:19 July 18, 2012 by pepsionice
I wouldn't worry...the state will buy it, and operate it as a loss....like the dozens of other public structures they operate at a loss.
22:27 July 18, 2012 by Screeper
Is this article discussing the bankruptcy of just the race circuit or the entire Nordschleife as well?
Today's headlines
Germany has just ten Ebola beds
Photo: DPA

Germany has just ten Ebola beds

Doctors at high-level infectious disease clinics say that caring for patients with the Ebola virus is much more intensive than they first thought, meaning they can handle fewer cases at once. READ  

Refugee Crisis
Now Berlin turns to tents to house refugees
A refugee protests on the roof of the former Gerhart Hauptmann School in Berlin. Photo: DPA

Now Berlin turns to tents to house refugees

Berlin has turned to huge tents and shipping containers to shelter growing numbers of refugees. With winter approaching, city politicians have called on the federal government for help. READ  

Ludwigshafen explosion kills one, injures 11
An eyewitness captured the moment of the explosion on their phone. Photo: DPA

Ludwigshafen explosion kills one, injures 11

UPDATE: One person has died and at least 11 others are injured after a huge explosion in western Germany on Thursday. READ  

Clueless Merkel forgets the F-word
Merkel suffers from Wortfindungsstörung at the IT summit in Hamburg. Photo: DPA

Clueless Merkel forgets the F-word

Angela Merkel's government is often criticized for its lack of understanding of all things digital and an appearance by the chancellor in Hamburg, which was supposed to change those perceptions, has only made things worse. READ  

Greenpeace finds danger in kids clothes
Photo: DPA

Greenpeace finds danger in kids clothes

Research released on Thursday by environmental group Greenpeace showed that more than half of clothing sold by German discount brands contain chemicals known to be dangerous to health and the environment, with items from Aldi being the worst offenders. READ  

Woman sues for accidental pot raid
Photo: DPA

Woman sues for accidental pot raid

A Bavarian woman is suing police for unlawful search after a reported break-in at her home led authorities to discover 158 cannabis plants in her basement. READ  

Germany lags in permits for non-EU migrants
Photo: DPA

Germany lags in permits for non-EU migrants

Germany gave out fewer residency permits last year per head to non-EU citizens than any other major European economy. READ  

Hamburg volunteers test Ebola vaccine
Hamburg's UKE has helped lead the fight against Ebola. Photo: DPA

Hamburg volunteers test Ebola vaccine

Volunteers have rolled up their sleeves for the first phase of the human trial for an Ebola vaccine at the Hamburg-Eppendorf University Clinic (UKE), it was announced on Wednesday evening. READ  

US adds voice to chorus telling Germany to spend
Jacob Lew and Sigmar Gabriel. Photo: DPA

US adds voice to chorus telling Germany to spend

US Treasury Secretary Jacob Lew, in a meeting on Wednesday with German Economy Minister Sigmar Gabriel, called on Germany to boost public spending to stimulate stuttering eurozone growth, the Treasury said. READ  

Man leaps with son, 5, from third-floor window
Schönhauser Allee in Berlin. Photo: DPA

Man leaps with son, 5, from third-floor window

A father and his young son are in serious condition after police and firefighters were called to their home in northeast Berlin early on Wednesday morning. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Gallery
PHOTOS: Huge explosion rocks Ludwigshafen
Photo: DPA/Shutterstock
Gallery
Which high school cliche is your German city?
Photo: DPA
Gallery
Storm hits southern Germany
Sponsored Article
An international school unlike any other : School on the Rhine
Photo: Fitzpatrick family
Society
'We still don't know what happened to Matthew'
Photo: Mariana Schroeder
Munich
Special Report: Hope and chaos at Munich's refugee shelters
Photo: DPA
Berlin
Robbers blow up Berlin bank
Photo: DPA
Culture
Can you top our history quiz leaderboard?
Photo: Facebook
Society
German motorcycle gang joins Isis fight
Photo: DPA
Politics
UKIP ‘seeks EU pact’ with German satirical party
Photo: DPA/Shutterstock
Gallery
11 things Germans are afraid of...
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,523
jobs available
Toytown Germany
Germany's English-speaking crowd