NÜRBURGRING GmbH, the state-owned company that owns the Nürburgring has gone bankrupt.

The company hoped for a €13-million rescue package from the European Commission but the European competition authorities refused to approve the plan and the firm which owns the track has now announced it is going into administration.

Although parts of the 'Ring are profitable, large amounts of money were squandered on a roller-coaster that was deemed too dangerous to run and a huge shopping centre that is all but empty.

Events will continue as normal, as administrators try and extract as much value from the situation as possible. It looks like tax payer will pick up the bill. Ernst & Young value the assets at €126-million but the firm is €413-million in debt.

It's likely a new private investor will take over or the circuit will go back under state control. Meantime, a lot of dead wood is going to be cut out of the Nürburgring to make it look as attractive as possible to potential new financiers.