The Algarve Motor Park (Autodrómo do Algarve) will be outlining a new proposal on November 2 according to an online story published by i earlier today.
The main parts of the plan include the extension of deadlines, new payment plans and the writing off of some of the debt while it is expected that the park will ask the Portuguese government to wait another ten years to pay back 614,000 euros that is owed in unpaid taxes and social security payments.
A special recovery plan to save the Algarve Motor park has been put together to prevent the park from being forced to close due to mounting debts owed by the park to multiple sources.
part of the plan will be to ask the BCP bank for what would amount to a discount of around 70 percent on their debt while other people who are owed money will be offered plots of land to meet payments instead of cash.
A statement by ParkAlgar, the company that runs the Algarve Motor park said that the new financial plan had been put together by the team at the park to “ensure the interest and satisfaction of its creditors”.
While new plans are being put forward to try and satisfy creditors the park is also looking for a further ten million euro injection of funds to be able to allow the construction of the real estate sector of the park to be able to continue.
Management at the park believe that by completing the projects of real estate, including the building of a hotel on the site, that further money could then be attracted to the park and investments would be made once again to help increase the revenues of the debt ridden sports facility.
Much of the future of the Algarve Motor Park really lies in the hands of the BCP bank which issued the loan in the first place. The park management is hoping that the bank will forgive the park of 70 percent of the interest accumulated on the debt to bring it down from 23.5 million to a more manageable seven million while the remaining 160.7 million euros of debt will then be renegotiated with the bank.
ParkAlgar will be looking for the Portuguese government to also renegotiate debts with them with the company looking to pay the 318,000 euros owed to the finaças over the next ten years in 120 monthly installments while the 295,300 euros owed to social security is to be paid back in 150 installments.
Cuts are expected to be made at the park in terms of staff and operational costs to try and make savings to help to claw back some of the cash needed by the park to pay the debts that continue to mount.