BK aims to race on despite bankruptcy filing

BK aims to race on despite bankruptcy filing


BK aims to race on despite bankruptcy filing


BK Racing plans to compete this weekend at Daytona International Speedway after the team filed Chapter 11 bankruptcy Thursday afternoon.

Bankruptcy will allow team owner Ron Devine to form a plan where he can repay the necessary debts. The course of action came before court proceedings were to be held in North Carolina after Union Bank & Trust, which claims BK Racing owes it more than $8 million, had requested a receiver oversee BK Racing collateral, which includes a charter.

According to the bankruptcy filings, BK Racing is said to have more than $10 million in assets and liabilities. There are 20 creditors with unsecured claims against BK Racing, which comes out to approximately $1.2 million.

Among those is engine supplier Race Engines Plus ($569,539.95); Champion Tire & Wheel ($94,999); and Champion Air ($70,550). BK Racing also faces a federal tax lien of more than $667,000.

Gray Gaulding will drive the No.23 car this weekend at Daytona. He did not get make a qualifying lap last Sunday because REP refused to start the motor. Gaulding must compete in his Thursday night Can-Am Duel race if he’s going to start the Daytona 500.

“We have a clear process around charter member governance,” read a NASCAR statement. “It is incumbent upon charter members to be ready to race and compete at the highest level. BK Racing remains the holder of the Charter.”