The Nürburgring is for sale
In financial difficulties for years, the Nürburgring will be put up for sale by its current owners. At present, this does not call into question the holding of the F1 Grand Prix scheduled for next July.
The announcement of the start of the sales process was made this morning by the law firm Lieser, which is in charge of the restructuring case of the German complex. The complex is currently burdened with debt due to large development projects, which led to the construction of an amusement park, a hotel complex, and a conference center, in addition to the Nordschleife and the circuit now used for Formula 1 Grand Prix races.
Since November 1, 2012, the municipal court of Bad Neuenahr-Ahrweiler has placed the assets of the three companies Nürburgring GmbH, Motorsport Resort Nürburgring GmbH, and Congress-und Motorsport Hotel Nürburgring GmbH under administration. As a result, local authorities are now seeking new investors capable of providing the necessary funds to revive the Green Hell, as the new SPD-Green coalition of the Land no longer wishes to invest its own funds in the project. This contrasts sharply with the decision of its predecessor, who provided a public guarantee for a €330 million loan taken out by Nürburgring GmbH.
This public aid had attracted the attention of the European Commission, which then launched an investigation into the legality of this public support to a private enterprise: « New public support measures for the companies operating the Nürburgring circuit and leisure park in Germany were decided on May 15, 2012, and partially implemented to avoid the immediate bankruptcy of these companies. These measures include a rescheduling of interest due on previously granted loans, a subordination of claims, and potentially an additional shareholder loan to keep the companies operational for six months. During this period, a restructuring or liquidation plan will be established. The Commission considers that these additional measures are closely linked to the other aid measures it has been investigating since March 2012 due to doubts about whether they were granted under market conditions. »
This investigation necessarily impacts the valuation of the assets. The lawyers handling the case thus ensure that the European Commission will be fully integrated into the sales process to reassure future investors that they will not have to repay the public aid received over the years. Jens Lieser stated: “We will fully meet our responsibilities and will establish the sales process in consultation with the European Commission to ensure compliance with the law for the future investor. The reliability of the schedule and legal certainties are the foundation for investors as well as for event organizers and Nürburgring clients.”
Nevertheless, the project leaders have already announced that this sale will not impact the 2013 season since all scheduled events will still take place. Therefore, there is no risk that the F1 calendar will lose another race in 2013, following the one in New Jersey. However, it is the principle of alternating with Hockenheim that could be called into question. But as long as Sebastian Vettel is one of the leading drivers and Mercedes remains prominently present in F1, there is very little chance that Germany will lose its national event.
If investors can purchase all or part of the complex, officials expect to raise at least 120 million euros in total.
With the participation of www.Racingbusiness.fr
