The administrator of the Algarve International Circuit (EIA) said today that an agreement was reached with the consortium of creditors that has been pushing for the insolvency of the operating company over claims for the payment of €1.6 million.
"We agreed to pay the last installment in the agreement with the consortium," said a Parkalgar spokesman.
During meetings over several days between the operators and its creditors, Paulo Pinheiro from operators, Parkalgar said that an understanding has been reached with its creditors that includes Siemens, Ensul Meci and SPIE, and said that that the request of creditors for insolvency "is a form of pressure."
The three companies seeking payment were responsible for the electrical infrastructure of the race track and the adjoining land to be used for a technology park.
In today’s business press it is claimed that the company managing the Algarve International Circuit could be on the brink of insolvency due to a debt of €1.6 million, that has risen to €2.6 million with interest.
The circuit’s administrator declined to reveal the details of the agreement and the amount of debt claimed by the suppliers, stating only: "We agreed to pay the last installment for services provided during the construction phase."
Paulo Pinheiro assured that the administration "is doing everything to honor their commitments."
According to Pinheiro, this race track turnover has increased by about 30% this year over the same period of 2011, and predicts a turnover for Parkalgar of about five million euros for 2012.
The debts under discussion above are but a part of the total and it is not know how the many smaller creditors are faring, nor indeed Bernie Ecclestone who was owed €3.2 million at the last count.