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Donington Confirms F1 Failure

Following the media reports on Friday suggesting that Doningon Park has withdrawn their high-risk financing scheme for the hosting of the 2010 British Grand Prix, the circuit officials today issued a statement confirming the allegations. Although their deadline seems to extend until Monday, October 26th – it was initially projected for later today – the statement confirmed that there are little chances that something can be put in place to save the 17-year F1 contract from being terminated.

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,” said the statement from DVLL.

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,
” concluded the statement.

With the Canadian problem already solved – tax issues have been worked out by the Canadian officials in recent days – and Hockenheim secured on the 2010 calendar, Bernie's new problem will, no doubt about it, bear the name of the British Grand Prix. However, as revealed by the 78-year old Brit last week, Donington's failure to attract the sums of money they needed to revamp their circuit didn't come as a shock to him, so he has probably come up with a solution for it by now already.

Most likely, the 2010 British Grand Prix will move back to Silverstone, who will likely take advantage of this situation to ink a multi-year contract with Ecclestone in the upcoming few weeks.
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