Donington admits bond plan collapse

The Donington circuit have confirmed that their bond plan to raise £135 million in order to host the Grand Prix of Great Britain next year has failed. This breach of contract with Bernie Ecclestone will almost certainly end the hopes for the circuit to welcome Formula One in the near future.

In a statement released today, the circuit states: "In a statement issued on Friday, the track said: "Donington Ventures Leisure Limited can confirm that a bond for £135 million to cover the cost of the F1 redevelopment at Donington Park has been unsuccessful."

"Despite higher than expected levels of interest and very positive early indications, the bond - which was launched with Citi Group last week - has failed to secure enough subscription ahead of today's deadline."

"The news dealt an unexpected blow to staff and management at the circuit, who still have a deadline of 12pm on Monday 26 October to remedy a breach of contract with Formula 1 Rights Holder Bernie Ecclestone, in order to keep any plans for retaining the existing 17-year Formula 1 contract alive."

"Information regarding the circuit's future plans is not yet available, however the major focus is on providing security for the Leicestershire venue and all related parties, including staff and suppliers."

The Formula One group will now have to decide how react on this news and how they can assure the British GP on next year's calendar. Bernie Ecclestone is expected to try and secure a new deal with Silverstone, the track that was initially dumped in favour of a 17 year agreement with Donington, provided that they would complete infrastructure improvements in time.

We also hear that talks with Silverstone have intensified in recent weeks. As Silverstone is surely eager for a new long term deal, it is now up to Bernie to see if both term can agree on the financial matters.