The bank is looking for a trustee to be put in place to essentially take over operations of the team and collect debts
In late February, the courts ruled that BK Racing would be allowed to continue operations through the west coast swing. A hearing was sent once the team returned to the east.
After the hearing and before the west coast swing, the IRS filed a notice of debt. According to that filing, the team owes the IRS $2.53 million in unpaid taxes and fees.
The car has returned from the trip out west in one piece. The team netted 33rd (Las Vegas), 34th (Phoenix) and 32nd (California).
On Thursday, the hearing to reevaluate the situation began. After four hours, the discussion will continue this coming week.
BK Racing owes debts of $8 million to Union Bank & Trust. The bank has requested to appoint a receiver within the team to collect debts and sell the assets.
Team owner Ron Devine stated to the courts that the bank just wants their charter. A NASCAR charter is worth anywhere from $1-5 million.
Devine stated that is a trustee is put into place, the employees would quit. In addition, Devine noted that the team has a sponsorship deal worth $3.6 million. If a trustee was put into place, Devine stated the sponsor would disappear.
Earthwater is the sponsor noted. They were put on the car just ahead of the Daytona 500. BK Racing appeared in Atlanta with an all white race car. In the middle of practice, the re-lettered the car in support of Earthwater.
The #23 Monster Energy NASCAR Cup Series machine is piloted by Gray Gaulding.
No decision has been made from the courts. The hearing continuation is now scheduled to resume this coming Wednesday.
Related: Bank opens lawsuit, seeking charters