Scores of classic car enthusiasts have been left bitterly disappointed and their preparations stunted after it was confirmed that the Grand Prix de Malte Classic car race has been cancelled - 12 days before its planned start.

Event organiser Thierry Giovannoni issued a statement saying: "Due to adverse global economic circumstances, the Grand Prix de Malte Classic planned from October 29 to November 2 will have to be postponed to a date to be confirmed by the organiser in 2009."

Co-organiser Stephane Dupont yesterday told The Sunday Times that a best possible date still had to be established around mid-2009.

Classic car enthusiasts, however, claimed that funds provided by a foreign backer had been mismanaged, which was why the event had been cancelled.

Mr Dupont admitted there was a backer for the event, but denied that funds had been mismanaged.

"We are just as disappointed that the Grand Prix has had to be cancelled as Mr Giovannoni wanted it to become an international event," Mr Dupont said, adding that this was the first event Mr Giovannoni has had to cancel in 27 years of classic car event organisation.

"There was no mismanagement of funds. The costs this year escalated. We were basing our workings on similar figures to last year's event, which were in the region of €150,000. All last year's costs were covered by Mr Giovannoni. This year, the costs were rising to €400,000 which is far more than we had anticipated."

Crowd security was a major issue and the organiser had been given quotes for the placement of around 900 concrete blocks along the route; 150 were used at last year's event.

"Less participants were able to come to Malta this year," he explained. "Many cars that were to be brought to Malta participated in the biennial Monte Carlo and Le Mans events in the summer. Several were involved in minor incidents and had problems and needed repairs; 25 cars dropped out."

He said that until three weeks ago, just over 50 cars from France, Belgium, Switzerland and a few from the UK had confirmed their participation. Another 15 were expected to confirm at a later stage. British racing legend Stirling Moss had already confirmed his participation in the Grand Prix de Malte.

Mr Dupont said a similar event was being held in Tunisia on the same weekend as the Grand Prix de Malte's original dates, which compounded matters further.

Mr Dupont said Mr Giovannoni was determined to save his reputation and was holding a "mini event" in Sicily next weekend.

Several local enthusiasts were looking forward to the second grand prix and many went to great expense to get their cars shipshape.

"This event was good for Malta, good for the niche market, and good for the enthusiasts," one classic car owner told The Sunday Times. "This year it could have built on last year's grand prix and improved. Maybe the financial priorities were not right. It is a great pity. The organisers, the authorities and the car owners should all do their best to hold the event next year."

Mr Giovannoni organised the first ever Grand Prix de Malte along the Valletta coast a year ago, drawing crowds of over 20,000 people.

Maltese and foreign-owned classic sports cars dating from 1910 had taken part and, although there were some problems with crowd safety and traffic management, the event was lauded a success.