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NASCAR Cup: BK Racing for sale

DAYTONA BEACH, FL – FEBRUARY 10: Gray Gaulding, driver of the #23 Toyota, practices for the Monster Energy NASCAR Cup Series Daytona 500 at Daytona International Speedway on February 10, 2018 in Daytona Beach, Florida. (Photo by Jared C. Tilton/Getty Images)

By AMANDA VINCENT

BK Racing is up for sale, according to court-appointed trustee Matt Smith. The sale will include assets of the team that fields the No. 23 Toyota in the Monster Energy NASCAR Cup Series, including a charter that guarantees the car starting positions in all Cup Series races.

“We’re selling a race team; we’re not just selling a charter,” Smith said after a hearing in Wester District Court of North Carolina on Tuesday, as quoted in a Yahoo! Sports report. “So the charter is the largest asset in this case, but it’s not the only asset. This is a viable race team, and we’re trying to prove that each and every week. We’re meeting obligations of NASCAR by showing up and competing in good faith. This isn’t just a liquidation. What brings the best result to all creditors is the sale of a race team, not just the sale of an asset.”

BK Racing filed for chapter 11 bankruptcy in February with its most notable debt being a $9.25 million debt to Union Bank & Trust. The team also has been on the receiving end of multiple tax liens over the last couple of years and its debts to more than 20 other creditors total more than $1 million. In March, Smith was appointed by a bankruptcy court in North Carolina to run the race team, stripping management duties from team owner Ron Devine.

“I think there needs to be a change in ownership in the team, and I think this process will do that,” Smith said of the sale. “I’m working really, really hard to make sure we get the right outcome for this team.”

The new owner would have to be approved by the court, and Smith would be obligated to show that the best price possible was obtained.

BK Racing used to be a two-car team in the Cup Series but scaled back operation, shuttering its No. 83 team, in 2018. Gray Gaulding has driven the No. 23 in all 15 races, so far, this season, returning to BK Racing after departing as a result of a pay dispute last year. Gaulding is 32nd in the Cup Series driver points standings with a season-best finish of 20th in the season-opening Daytona 500 in February.

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Posted by on June 13, 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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