- Aug 2, 2012
German state to float $312M loan guarantee for Nürburgring
The government of the German state of Rhineland-Palatinate is set to make hundreds of million of euros available to the Nürburgring. This will guarantee that a loan be partially paid, making it possible for the Nürburgring to continue to operate.
According to Germany's Deutsche Welle, officials in the West German state came to the decision to keep the track afloat during a special meeting of the state legislature's budget and finance committee. The loan, in the amount of €254 million ($312 million) enables Nürburgring GmbH, who operates the track, to service a €330 million loan ($402M). That payment will allow the track to keep operating.
According to the report, several members of German government pushed for the delay of this move, citing that such a maneuver could be illegal under European law.
The wold-famous racetrack has fallen on hard times, and this bailout appears to be essential in its bid to stay afloat. The original loan taken out by the track's investors was to build a supporting mall and a roller coaster. Neither of these attractions has proven successful, leaving investors to plead for a bailout from the EU.
No word on how this will effect Formula One boss Bernie Ecclestone and his commitment to "do everything" to save the 'Ring. If still committed, it likely just became a $312 million more manageable undertaking for Bernie to do so.