Nurburgring F1 circuit to enter administration

Germany's iconic Formula One track, the Nurburgring, is 13 million euros (£10.2 million, $16 million) in debt and is poised to enter administration, the circuit's majority shareholder disclosed Wednesday.

The circuit's owners had been counting on financial aid from the European Union after extensive renovation work but were told by the EU last week that no decision on a bail-out would be made until at least July 30.

That has left them with no option other than instructing the track's management board to start an insolvency process, Kurt Beck, head of the regional government which owns 90 percent of the venue, said.

Since 2009 the Nurburgring has shared the German F1 Grand Prix with Hockenheim, hosts of this Sunday's race.

Meanwhile Nurburgring Automotive, the company that manages the circuit, says it has reached a deal with F1 boss Bernie Ecclestone to continue staging races on alternate years with its sister track at Hockenheim.

The company confirmed in a statement: "Nurburgring Automotive directors Joerg Lindner and Kai Richter have reached agreement with F1 chief Bernie Ecclestone on a project to guarantee the future of F1 at Nurburgring."

The deal would see Ecclestone taking over promotion for the race, covering all the race's costs and pocketing any revenue.