BK Racing has been temporarily allowed to continue racing
Just ahead of the Daytona, BK Racing filed for chapter 11 bankruptcy. The bankruptcy filing stalled a hearing that would have determined if the courts would need to place a receiver in control of the NASCAR teams assets.
The team went on to finish top 20 in the 2018 Daytona 500. That netted a $450,000 payout to the team.
Last week, the charter holding team found a sponsor and installed their wrap in the middle of practice. They then started at the tail of the Atlanta Motor Speedway field and finished last in 36th. Last place paid the team another $92,000.
The judge has ruled that it will allow the team to continue operations through the upcoming 3 NASCAR races. Those races; Las Vegas Motor Speedway, ISM Raceway, Auto Club Speedway.
However, per the judge’s ruling the team will need to show proof of employee as well as insurance payments.
BK Racing currently owes their engine supplier $569,539. In addition, they owe the pit cart and wheel supplier $94,999.00. They are at least $35,000 in debt to a minimum of 7 additional suppliers.
Beyond that, they owe the bank $8 million. The bank originally requested that a receiver be put into place.
Gray Gaulding turned 99 laps at Atlanta Motor Speedway. NASCAR doesn’t allow start and park race cars in 2018. The official reason for pulling off was a ‘steering’ issue.
However, I would expect those steering issues to continue as a wreck would likely force this team to miss another payment to employees or insurance. If that happens, the judge could elect to place a receiver on the teams assets.
They might just survive after all! How about that?
Related: Bank opens lawsuit, seeking charters