Court set to determine what the team can do with Daytona 500 earnings; Parts suppliers want guaranteed payments
Just ahead of the Daytona 500, BK Racing filed for chapter 11 bankruptcy. There was a hearing scheduled in Mecklenburg County Superior Court to determine whether or not a receiver was necessary to cease the teams assets.
The chapter 11 bankruptcy filing stalling that hearing and allowed BK Racing to temporarily continue operations. The team then found a sponsor for their Daytona 500 running with ‘Earth Water’.
At the end of the 2018 Daytona 500, Gray Gaulding put the car in the top 20! With the result, the team earned $450,000 via the biggest NASCAR race of the season.
In a hearing this morning, BK Racing is asking to use those funds to pay vendors and employee’s. The team owes $21,000 to employee’s from former racing seasons according to ESPN.
In the vendors department, BK Racing owes more than 1 million. Most notably, Race Engines Plus to whom they owe $569,539.95. Race Engines Plus supplies the engines to the MENCS team at a rate of $35,000 per race.
Champion Tire & Wheel is due the second most from BK Racing. The team owes them $94,999.00. For $4,000 per race, Champion Tire mounts race wheels and supplies a pit box at each event.
Both of these companies have asked the courts to force BK Racing to apply guaranteed payment via contracts. If not, each company is interested in terminating their deals with the team.
BK Racing is the owned of a NASCAR charter. With the charter, they are guaranteed a start in the Monster Energy NASCAR Cup Series field. Only 40 cars allowed to start an event. However, only 36 teams are on the entry list for Atlanta Motor Speedway.
Despite that, BK Racing has estimated that the NASCAR chart could be worth an estimated $5 million.
The team was 33rd quickest in the opening round of practice at Atlanta Motor Speedway. Gray Gaulding is again piloting the #23 machine.
Related: Bank opens lawsuit, seeking charters