• Germany bailing out the Nurburgring - $312 million dollar loan

                    
      		   
      Published on 08-03-2012 04:32 PM
      1 Comment Comments
      The European Union said it would not bail out the Nurburgring (which frankly we would much prefer over Greece) but Germany will. The track announced it was bankrupt last month and there were rumors of Bernie Ecclestone stepping up to the plate to help out which were quickly debunked by Ernie himself (as well as when he skipped a meeting). The German state of Rhineland-Palatinate agreed quickly to guarantee hundreds of millions of Euros to keep the track operating.

      The track itself is 90% owned by the state. This likely means we will see closer regulation of the track and no efforts to try to expand the ill-fated amusement park and hotel ventures. There is also a plan that may turn the track into a publicly traded company with funding from private investors. We are just happy the Ring is not shutting down.


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      This article was originally published in forum thread: Germany bailing out the Nurburgring - $312 million dollar loan started by Sticky View original post
      Comments 12 Comments
      1. folgrz's Avatar
        folgrz - 08-03-2012, 05:27 PM
        Long live the ring!

        I hope to go there one day
      1. Q4P's Avatar
        Q4P - 08-03-2012, 06:55 PM
        I am moving to Germany... this is a country where they have their priorities set straight god damn it.
      1. s62's Avatar
        s62 - 08-03-2012, 07:13 PM
        This is inaccurate. The money is going to the bank that loaned to the Ring
        so that bank will not go bankrupt.

        Ring is still bankrupt.
      1. Sticky's Avatar
        Sticky - 08-03-2012, 07:14 PM
        Click here to enlarge Originally Posted by s62 Click here to enlarge
        This is inaccurate. The money is going to the bank that loaned to the Ring
        so that bank will not go bankrupt.

        Ring is still bankrupt.
        How is it inaccurate? They are loaning money to pay the loan and keep it functioning.
      1. s62's Avatar
        s62 - 08-03-2012, 08:11 PM
        Click here to enlarge Originally Posted by Sticky Click here to enlarge
        How is it inaccurate? They are loaning money to pay the loan and keep it functioning.
        No, the state is bailing out the bank but the Ring is still bankrupt.

        No money has gone to the Ring.
      1. Sticky's Avatar
        Sticky - 08-03-2012, 09:36 PM
        Click here to enlarge Originally Posted by s62 Click here to enlarge
        No, the state is bailing out the bank but the Ring is still bankrupt.

        No money has gone to the Ring.
        So then how is the Ring said to keep functioning?
      1. Sticky's Avatar
        Sticky - 08-03-2012, 09:36 PM
        Click here to enlarge Originally Posted by s62 Click here to enlarge
        No, the state is bailing out the bank but the Ring is still bankrupt.

        No money has gone to the Ring.
        A German state is to release hundreds of millions of euros to guarantee a loan that will allow the Nürburgring racetrack to continue operating.


        ?
      1. whoosh's Avatar
        whoosh - 08-03-2012, 09:49 PM
        The only way for anyone to have a prayer of getting loans paid back is to allow the track to continue to operate for tourist laps and sanctioned events. They need to sell the roller coaster for its scrap metal value.
      1. s62's Avatar
        s62 - 08-04-2012, 07:09 AM
        Just the interest payments are €47,000 PER DAY!!!

        Renting out both the GP track and the Northloop cannot cover interest payments
        and paying the staff. That´s how $#@!ed up the situation is.

        The state cannot give the money to the Ring, the EU has deemed it illegal
        state aid.

        The gaping hole in the state owned bank had to be plugged though.
      1. Sticky's Avatar
        Sticky - 08-04-2012, 11:03 AM
        So how are they going to keep it the ring going and how is it able to keep going? It says the state released hundreds of millions.
      1. s62's Avatar
        s62 - 08-04-2012, 05:12 PM
        Click here to enlarge Originally Posted by Sticky Click here to enlarge
        So how are they going to keep it the ring going and how is it able to keep going?
        Not known yet.

        Click here to enlarge Originally Posted by Sticky Click here to enlarge
        It says the state released hundreds of millions.
        Yes, to the bank, not the Ring.
      1. Sticky's Avatar
        Sticky - 08-04-2012, 05:14 PM
        Click here to enlarge Originally Posted by s62 Click here to enlarge
        Not known yet.


        Yes, to the bank, not the Ring.
        Ok, I guess this is all not being reported correctly then.