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NASCAR Cup: BK Racing files bankruptcy

No. 23 BK Racing Toyota (photo courtesy of Getty Images for NASCAR).

No. 23 BK Racing Toyota (photo courtesy of Getty Images for NASCAR).

By AMANDA VINCENT

Monster Energy NASCAR Cup Series race team BK Racing has filed for Chapter 11 bankruptcy, according to an ESPN report Thursday. The filing came less than hour before a hearing requested from Union Bank & Trust to take control of BK Racing assets was scheduled to start, according to the report. The bankruptcy filing stopped court proceedings.

The race team still is expected to compete in Sunday’s Cup Series season-opening Daytona 500 on Sunday with Gray Gaulding as driver of its No. 23 Toyota. The race team entered only the No. 23 for the Daytona 500 after running two cars, also fielding the No. 83, last season. Gaulding in the No. 23 is a reunion of driver and team after they parted ways amid a financial-related dispute in 2017.

Gaulding didn’t make a qualifying attempt in Daytona 500 front-row qualifying Feb. 11, because the engine of the car wasn’t fired during pre-qualifying inspection. The engine builder, Race Engines Plus, refused to start the engine, reportedly, because of a financial dispute with the race team.

BK Racing was the subject of multiple reports of financial woes in 2017 and early 2018 that included IRS tax liens and lawsuits by Union Bank & Trust and Race Engines Plus.

“BK will do everything it can to continue to race,” BK Racing owner Ron Devine said in a text, according to the ESPN story.

BK Racing has a charter for its No. 23 team, but NASCAR has the option to revoke the charter amid the team’s problems. The sanctioning body, though, has confirmed that it will allow BK Racing to keep its charter.

A charter BK Racing sold to Front Row Motorsports prior to the start of the 2017 season also has been tangled into the dispute between BKR and Union Bank & Trust, as the bank contends BK Racing had not right to sell that charter, because it was used as collateral for a loan, a claim Devine disputes. The race team was issued a temporary restraining order last month, barring it from selling assets.

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Posted by on February 15, 2018. Filed under Breaking News,Featured,Monster Energy NASCAR Cup,NASCAR. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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