I’ve just received the item below in my inbox. It relates to a law suit which veteran Donington circuit owner Tom Wheatcroft has filed against the Donington Ventures company of Simon Gillett, who has a contract to stage the British Grand Prix from 2010 onwards.
“Wheatcroft & Son Limited, the owners of Donington Park motor racing circuit, have issued legal proceedings against Donington Ventures Leisure Ltd, the operators of the circuit, seeking £2.47m in rent arrears and forfeiture of the circuit lease.
Lawyers at Browne Jacobson LLP, acting on behalf of their client Wheatcroft & Son Limited, issued the proceedings at Derby County Court earlier today (23rd April).
Wheatcroft & Son Limited awarded Donington Ventures Leisure Ltd a 150-year lease back in January 2007. Donington Park, has since been awarded a ten-year contract to host the British Grand Prix from 2010.
Kevin Wheatcroft of Wheatcroft & Son Limited said :
“It is with great reluctance that we have taken this decision. Donington Ventures Leisure Ltd owe us nearly £2.5m in rent dating back to September 2008. Despite receiving numerous reassurances over a number of months they have consistently failed to meet their financial obligations under the terms of the lease. We have held off taking legal action for as long as possible but have been left with no choice but to commence proceedings to recover the outstanding rent and forfeit the lease.”
I posted on the accounts of Donington Ventures earlier in the year. There have also been some problems with circuit licences.
Gillett was due to announce details of a debenture scheme for funding the works to bring the track up to F1 standard. This will add fresh material for the sceptics.
The timing of the issue of the press release was interesting as Donington Management and Lord Astor were begging for government support for the Grand Prix in the Houses of Parliament this afternoon..