Donington Park chiefs have effectively made a last-ditch effort to help raise the money required to stage the British Grand Prix.
Pressure on Gillett as Donington deadline looms
Donington Park chiefs have effectively made a last-ditch effort to help raise the money required to stage the British Grand Prix by pleading to potential investors for help.
Donington Holdings PLC, parent company of CEO Simon Gillett's Donington Ventures Leisure Limited, are seeking £135million worth of investment through the issue of high-yield bonds.
Circuit advisors Citibank are piloting the chase for the cash, serving as the lead manager as they look to secure aid from insurance companies and big institutional investors to save Donington's bid.
Meetings with investors are imminent and Gillett is on borrowed time after Formula One boss Bernie Ecclestone announced he was in breach of contract this week.
Two weeks
Gillett was told, as per the clauses of the 17-year deal agreed between the two men in 2008, that he had two weeks to find the money needed to redevelop the circuit or he would lose the grand prix.
He now has until October 26 to locate the £135m, the majority of which will be used to fund the redevelopment of the circuit due to host the British Grand Prix in only eight months' time.
The financial market is still recovering from global economic crisis, making Gillett's feat appear unrealistic but, according to financial experts, the achievement is not impossible.
"Eight months ago the high-yield market was quite a mess, but it has recovered, with other financial markets, in the last four or five months or so, and it's in pretty good condition right now," said one financial analyst.
"For regular issues in the high-yield market you can turn around bond deals much larger than this in one day. It's not atypical.
"They (Donington) wouldn't go down this route if they didn't think they were able to complete it.
"Whether it actually comes together or not remains to be seen, but they obviously think they have a decent shot."
