Bank claims ownership of two NASCAR charters; asks court system to seize every asset of the team
Back in November, Union Bank & Trust opened a lawsuit in North Carolina, against BK Racing. They say the NASCAR team owes them a substantial amount of money, originally at $9.1 million.
Two NASCAR charters were used as collateral for loans received from the bank. Since, the #83 charter has been sold to Front Row Motorsports. The team owner has stated from the beginning that the #83 charter was not used as collateral against the loan, it was acquired after the loan, per his statement.
Union Bank & Trust is based in Virginia. They have now asked federal court in Virginia for injunctive relief. If granted, they have requested a receiver to seize all of the teams assets.
The bank now claims the team owes them $7 million. That’s $2 million less than originally listed 2 months previous. It unclear whether the team has paid off some of the debt or if the bank has re-assessed the amount.
“They wanted to make a big stink about it so that we would react and do stuff that we don’t want to do with them,” Ron Devine told Bob Pockrass of ESPN back in December 2017. “We’re working on it. I actually have an agreement with them in place.”
The team has already had over $200k in assets seized by the state. The N.C. Department of Revenue collected those assets due to unpaid taxes.
3 haulers, 4 trucks, a show car trailer and a Corvette are set to go up for auction on March 10th at 10am. Classic Auctions is placing those items at the auction block. These are the assets seized by the state due to unpaid taxes.
Bob Pockrass of ESPN also reported that BK Racing also owes $1.59 million to it’s engine supplier.
In December 2017, Lynch Racing Co purchased a stake in BK Racing. The amount and percentage of the purchase was not listed.
Related: Bank opens lawsuit, seeking charters