Nurburgring to file for insolvency

18/07/2012

As the Formula One circus pitches tent at Hockenheim, it has been revealed that the Nurburgring, which hosts the German Grand Prix on a rotating basis, is to file for insolvency.

At a press conference earlier today, Kurt Beck, the state governor for the Rhineland-Palatinate region in which the circuit is located, admitted that the company behind it, Nurburgring GmbH, owes the Rhineland-Palatinate bank almost £235m for redevelopment work carried out in 2009.

Nurburgring GmbH has applied to the European Union's Executive Commission for an emergency loan of £10m to cover interest repayments, however it is not thought that the request will be granted, Beck admitting that there is a "high probability of insolvency at the end of the month due to a lack of liquidity".

Not that long ago, at the height of the Schumacher-era, Germany played host to two rounds of the championship. However, as the Red Baron's reign came to an end the fans demand waned indeed, it was Hockenheim that first ran into financial difficulties, eventually calling for the country's one remaining round of the championship to be shared with the Nurburgring on a rotating basis.

Ironically, Speaking to Auto Motor und Sport, Georg Seiler, managing director of the Hockenheimring, suggested that providing certain conditions are agreed his circuit could be in a position to take over a permanent host for his country's round of the championship.

"At present there is no request. But if there is one, I do see a possibility that F1 comes back every year at Hockenheim," he said. "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."