At the heart of NeXovation’s complaint is the sellers’ indication to NeXovation that the winning bid would not be decided until the due diligence was complete on March 31, 2014 and the bidders had time to finish their financing commitments. However, the winning bid for the Nürburgring was prematurely awarded on March 11, 2014 for a reported EUR 77 million (with an undisclosed amount of initial cash) plus EUR 25 million in other improvements. NeXovation provided timely and proper notifications and bids from the first day of the announced bidding process, and the company’s binding financial commitment was available on March 26, 2014, five days prior to the communicated expiration of the bid process on March 31, 2014.
Robert Sexton, CEO of NeXovation, confirmed the sellers’ lack of notification of a projected award date, other than the March 31, 2014 financing commitment date that NeXovation had been working off all along. The timeframe for a financial commitment was communicated in conjunction with NeXovation’s February 17, 2014 bid and was confirmed again to the sellers on the morning of March 11, 2014, the day the bid was unknowingly awarded to Capricorn Automotive. NeXovation was not formally notified that the bidding process had concluded until March 14, 2014.
“Our unique business model has always kept the motorsports community, OEM’s and the local citizens in mind, as they are all tied to the history and future success of the Nürburgring,” says Sexton. “One of our concerns is that the representatives of some of these stakeholders on the creditors committee may have pushed ahead with their decision based on incorrect or incomplete information or assertions.”
NeXovation’s EUR 150 million bid included a secondary cooperative performance-based incentive that could pay an additional EUR 200 million plus to the sellers, and its business model allocates over EUR 500 million in additional development and infrastructure improvements. In this regard, the company’s investment bank and strategic advisory firm, LoHi MB, confirms that NeXovation has executed a letter of intent with an investor for the purchase of the Nürburgring assets. Futhermore, LoHi MB confirms that NeXovation has the committed capital to finance the purchase of the Nürburgring and fulfill its obligations under the bid.
Sexton’s greatest concern, however, involves the enhancement of the Nürburgring, the state of Rhineland-Pfalz, the greater Nürburgring area, and the retention of all Nürburgring employees, the latter of which was made a condition of the sale early on in the process. NeXovation’s business model includes the following commitments which were confirmed in NeXovation’s indicative offer and its final bid:
- A purchase structure equal to the public debt (estimated at EUR 350 million at time of indicative offer),
- A commitment to maintain the Nürburgring as a motor sports facility with availability to motorsports enthusiasts globally, maintaining the heritage and historical stature of the “Ring”, and
- A commitment to locate NeXovation’s European Headquarters as well as the additional jobs associated with that Headquarters, in Rhineland-Pfalz, most likely in Mainz.
“Just like the EU and the taxpayers, a fair bidding process is of great importance to us. Therefore, we have decided to contest the sale of the Nürburgring,” Robert Sexton emphasized. After having filed its complaint, NeXovation looks forward to receiving feedback from the EU Commission.
For more information on NeXovation, visit www.nexovation.com.
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About NeXovation, Inc.
NeXovation is a global, multi-industry, innovation company committed to the belief that a thoughtful and dedicated choice of priorities – regarding our world, communities, families, and each other – creates the potential for greatness, growth, joy and profit. Following these principles, NeXovation has brought together a unique team of experts and highly experienced professionals to make its vision part of your reality.
NeXovation has filed a complaint to contest the sale of the Nurburgring, and we look forward to receiving feedback from the EU Commission. Given that this is an ongoing procedure (and that NeXovation is under a non-disclosure agreement as part of the bidding process), the Company cannot provide further information at this time.