With Bernie Ecclestone having revealed that the venue is now in breach of contract, Donington Park has launched a financial scheme that it hopes will fund the revamp required to host the British Grand Prix from next season.
Ecclestone revealed yesterday [Tuesday] that a reported two week extension for Donington to prove funding in place was actually a two week period for the circuit to resolve a breach of contract that has now occurred as it struggles to find the funding needed for the circuit work thanks to the poor economic climate.
While work has started at Donington, the circuit is still a long way from being in a position to host the event and Ecclestone has warned that if the current issue isn't resolved, then the 17-year deal to host the British GP would be offered to Silverstone instead.
Now Donington has revealed the details of the scheme it hopes it will raise funds, although it remains to be seen if Ecclestone will be satisfied that the work can be done in time for the race.
“Donington Holdings Plc, the parent company of Donington Ventures Leisure Limited that operates the Donington Park motor racing circuit, has launched an offering of £135,000,000 aggregate principal amount of first priority senior secured notes due 2016,” a statement from Donington read. “The Notes are expected to be issued at a discount to the principal amount thereof. Purchasers of Notes will also be able to subscribe for warrants for no additional consideration.
“The offering of the Notes and the Warrants is being made solely by means of a confidential offering memorandum. The net proceeds of the offering of Notes, together with a concurrent offering of preference shares, will be used in large part to fund the redevelopment of Donington Park in preparation for the hosting of the Formula One British Grand Prix in 2010.”