The NASCAR Cup Series team ran up debt of $44,295,884 before being taken over by the courts and sold to pay off the debt
Several years ago, BK Racing took out a bank loan of $9,000,000 to fund operations of a NASCAR Cup Series team. As they continued to operate,
Read MoreFront Row Motorsports placed the winning bid for the majority of the assets
BK Racing has accumulated debt totaling $44,295,884
BK Racing filed for bankruptcy just ahead of the 2018 Daytona 500. Soon after, the courts appointed a trustee, Matthew Smith in charge of team.
Smith has operated BK Racing since the end of March.
Read MoreNASCAR Cup Series team to be sold by August 20th due to bankruptcy – NASCAR Xfinity team expected to place competing bid against current team owner
BK Racing visited bankruptcy court last Thursday to set terms of a possible sale. The sale of the team and or assets will be used to pay off debt accumulated by the NASCAR team from unpaid loans.
Read MoreU.S. District Court Judge has placed a Charlotte based business management consultant company in control of the NASCAR Cup Series team
Ron Devine has lost operating control of BK Racing
BK Racing will now be operated by a trustee following a court ruling on Wednesday.
U.S.
Read MoreThe 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.
Read MoreThe IRS has filed paperwork with the courts detailing millions in unpaid taxes, penalties and interest
BK Racing has just been allowed to continue racing by the court system. They were under fire from a host of creditors who all-together represent nearly $10 million in debt for the team.
Ahead of the Daytona 500,
Read MoreBank 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.
Read MoreThe Lynch Racing Co. acquires Iowa City Capital Partners’ position in the Monster Energy NASCAR Cup Series team BK Racing
Earlier this week, it was announced that Union Bank & Trust was seeking two NASCAR Charters. Those Charters were used as collateral to loans to BK Racing.
However,
Read MoreIsraeli, Alon Day is set to make NASCAR debut in one of the best looking racecars this season
Alon Day will become the first driver from Israel to ever compete in NASCAR’s top series next weekend in the Toyota/Save Mart 350 driving the BK Racing No. 23 EarthWater Limited Toyota Camry.
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