Nurburgring Files for Bankruptcy

The state-owned company that runs Germany's legendary Nurburgring race track has filed for bankruptcy after failing to arrange €13 million ($16 million) in emergency financing.

The track reportedly has piled up €413 million ($502 million) in debt, mainly through a failed leisure complex opened in 2009 that includes restaurants, two hotels and a roller coaster, mall, casino and concert facility.

The 12.9-mile track is owned by the German state of Rhineland-Palatinate through Nurburgring GmbH. The state reportedly has pumped more than €500 million ($608 million) into the complex since 2004. But last year the European Commission declared the subsidies anti-competitive and ordered them stopped.

Operators had hoped last week to obtain the €13 million bridge loan for the track from the German government. But the EC refused on July 18 to allow it.

The facility, which allows private owners to drive on the circuit, is widely used by virtually every major carmaker to test their most powerful vehicles. Since 2007 the Nurburgring also has hosted Germany's Formula One race on alternate years with a sister track at Hockenheim.

F1 chief executive Bernie Ecclestone tells Rhein-Zeitung that the Nurburgring, the site of last year's German Grand Prix, must resolve its financial woes by the end of July or risk losing rights to stage next year's race.