Donington Park says it has until midday on Monday to sort out its financial planning for the British Grand Prix, after confirming efforts to raise a £135 million bond have failed.
Reports emerged last night that its funding scheme had been pulled from banks, as it bids to raises the finances necessary to redevelop the track ahead of next year's British Grand Prix.
The track has already failed to hit a deadline with Bernie Ecclestone, which means it is now effectively in breach of contract. However, the terms of the deal do give the track extra leeway to rectify the breach before the contract is terminated.
That deadline, claims Donington Park, runs out on Monday - leaving track owners less than two working days to try and put a money package together before it loses the British Grand Prix.
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."
Silverstone is waiting in the wings and ready to do a deal with Ecclestone to secure the future of the British Grand Prix, with dialogue between the two parties having increased in recent weeks.
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Silverstone has already begun serious discussions with Bernie Ecclestone about a new British Grand Prix deal, AUTOSPORT has learned, but a contract is still far from guaranteed.
Donington Park has until midday on Monday to sort its financing out before it is in breach of its contract to host the race, and sources have revealed that talks have already opened between Ecclestone and Silverstone about a fall back plan.
But although it is understood that those discussions have moved up a gear in recent weeks, once it became clear that Donington Park was in trouble, there remains no certainty that a deal will be put in place.
Sources suggest that the contract currently being proposed by Ecclestone's camp is very similar to the one that Silverstone rejected 18 months ago as being commercially unviable - and which led to the deal with Donington Park happening in the first place.
Although Silverstone is keen for a long-term deal to secure the future of the British Grand Prix, the track has made it clear several times that it will only keep the race if it makes financial sense.
A source close to the discussions said: "Silverstone is keen and ready to progress, but as we stand at the moment, no viable contract has yet been offered."