Following this morning’s update we can confirm NÃ¼rburgring GmbH is one step closer bankruptcy. Speaking earlier today Kurt Beck,Â Rhineland-Palatinate State Premier, confirmed the European Commission’s refusal to provide a â‚¬13m rescue package has forced his hand.
â€œWith greatest probability, bankruptcy would be applied for, for the end of the month due to lack of liquidity,â€ Beck said.
Facing debts of â‚¬413m the ‘Ring only has assets valued at â‚¬126m, according to accounting firm Ernst & Young. That would leave publicly-owned holding company, NÃ¼rburgring GmbH, exposed to â‚¬287m of debt it cannot cover. Proving what a tangled and confusing mess this situation is NÃ¼rburgring GmbH’s largest creditor is the Rhineland-Palatinate state.
Administrators are likely to take control of existing contracts, including the German Grand Prix, which alternates on a biennial basis with Hockenheim. The NÃ¼rburgring is next due to host an F1 race in 2013.
NÃ¼rburgring Automotive GmbH, the management company handling the day to day running of the NÃ¼rburgring, has issued a press release saying it is not affected by the holding company’s insolvency. They have also sent out an internal memo to staff assuring them their wages are safe.
We’ll have more news as it comes to hand.