Today, BK Racing filed for chapter 11 bankruptcy
BK Racing is scheduled to start their first race of the 2018 NASCAR racing season tonight. They are scheduled to start last in the second of two Daytona Duels.
The Daytona 500 field is set at 40 cars and exactly 40 cars are registered for Sundays event in Florida. Today, one of those teams has filed for chapter 11 bankruptcy.
There was a scheduled hearing in the Mecklenburg County Superior Court for this afternoon. Union Bank and Trust issued a request on the courts to place a receiver in control of all of BK Racing’s assets including but not limited to their NASCAR charter. The hearing would have determined if that was needed.
Union Bank and Trust states that BK Racing owes them more than $8 million in unpaid loans. The issuing of a receiver would have basically seized the teams assets. Then, the receiver would have been responsible for selling the assets in collection of debt.
In a rather interesting twist, BK Racing filed for chapter 11 bankruptcy just ahead of this afternoon’s hearing. The bankruptcy filing by the NASCAR team placed a pause on the hearing and allows the team time to restructure their debts.
With the chapter 11 filing, other debts, not previously released, have been presented to the court. The team owes money to many organizations, the bank not included. The official filing stated the MENCS team owed debt to 50-99 organizations.
BK Racing has already had $200k in assets seized by the state due to unpaid taxes during the off-season. Those assets included 3 haulers and a Corvette.
Gray Gaulding is driving the #23 for BK Racing. The team still plans to run this weekends event. On Tuesday, the team announced the EarthWater had signed on as their Daytona 500 sponsor, at the last minute.
“We have a clear process around charter member governance,” NASCAR stated to NBC Sports. “It is incumbent upon charter members to be ready to race and compete at the highest level. BK Racing remains the holder of the Charter.”
The Daytona 500 is scheduled to run this Sunday.
BK Racing Debt
Below are the highest dollar amounts owed by BK Racing to various companies other than the bank or the state.
Race Engines Plus
Champion Tire & Wheel
Panki Racing Systems
Simpson Performance Products
Harraka Racing Equipment
Assets of BK Racing are estimated at $10-50 million.
Related: Daytona Duels: Starting lineups
Related: Bank opens lawsuit, seeking charters