Nürburgring declared bankrupt

Timo Glock of Germany and Marussia Virgin Racing gets off the track after the start of the German Formula One Grand Prix at the Nurburgring on July 24, 2011 in Nuerburg, Germany

It has been revealed at a press conference on Wednesday that the Nürburgring has officially been declared bankrupt by the Minister-President of Rhineland Palatinate Kurt Beck. The circuit owners were denied a €13 million subsidy from the European Commission. The Nürburgring track underwent a substantial redevelopment in 2009, but now the circuit owners are struggling to pay off the cost.

Nürburgring GMbH, the track’s holding company, is facing a debt of €300 million. Due to the redevelopment in 2009, Nürburgring GMbH owes the Rhineland Palatinate state bank over €300 million.

At the moment, Nürburgring hosts the German Grand Prix alternately with Hockenheim. Earlier, the Hockenheim circuit said that it was not able to host the German F1 race permanently; however, managing director Georg Seiler has said that the circuit is now in a position to do so if required.

“At present there is no request,” Seiler said. “But if there is one, I do see a possibility that F1 comes back every year at Hockenheim. But then everything would have to agree: the cost side, the contract, the policy and much more. I do not know if this is all so easy to fulfill. Still, we would be happy if we would continue the alternation.”

Formula One supremo Bernie Ecclestone has already mentioned that he is hoping to keep the Nürnburgring for the next F1 season. The 81-year-old has offered to cover the annual costs. He is is prepared to waiver the Grand Prix fees in return for all future revenue. If this happends, the Englishman would effectively become the self-organiser of the race.

The German Grand Prix will be held this weekend at Hockenheim. It will be round 10 of the 2012 Formula One World Championship.