BK Racing files for bankruptcy, retains NASCAR charter for now

BK Racing will retain its charter in the Monster Energy NASCAR Cup Series despite filing for Chapter 11 bankruptcy on Thursday.

BK Racing files for bankruptcy, retains NASCAR charter for now
Gray Gaulding, BK Racing Toyota Camry
Gray Gaulding, Toyota Camry
Gray Gaulding, BK Racing Toyota pit stop
Corey LaJoie, BK Racing Toyota
Corey LaJoie, BK Racing Toyota

BK Racing, LLC filed paperwork for Chapter 11 bankruptcy in United States Bankruptcy Court, Western District of North Carolina.

In its filing, the NASCAR team, which is fielding the No. 23 Toyota in Sunday’s Daytona 500 with driver Gray Gaulding, estimated having between 50 and 99 creditors with liabilities ranging from $10 million to $50 million.

The largest liability is to Race Engines Plus LLC in the amount of $569,539.95.

The purpose of a Chapter 11 bankruptcy is to allow an individual or business a limited amount of time free from creditors collection efforts to restructure its financial obligations so it may continue to operate in a normal fashion under a court approved plan of reorganization.

“We have a clear process around charter member governance,” NASCAR said in a 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.”

Under the rules of the charters – which guarantee a spot in the field for Cup teams and provide a greater share of revenue from the race purse – NASCAR could still revoke the charter during the bankruptcy process.

The Chapter 11 filing halts all other court proceedings until the bankruptcy petition is resolved.

The team said it planned to continue to race each week.

BK Racing, owned by Ron Devine, made its debut in the Cup series in the 2012 Daytona 500.

 

shares
comments
Larry McReynolds reflects on Dale Earnhardt's historic Daytona 500 win

Previous article

Larry McReynolds reflects on Dale Earnhardt's historic Daytona 500 win

Next article

Daytona 500: Ryan Blaney wins first Duel over Logano

Daytona 500: Ryan Blaney wins first Duel over Logano
Load comments
From the archive: Dale Earnhardt’s final Autosport interview Prime

From the archive: Dale Earnhardt’s final Autosport interview

The death of Dale Earnhardt in the 2001 Daytona 500 shocked NASCAR to the core. At the Daytona 24 Hours, two weeks before his fatal accident, ‘The Intimidator’ shared his expectations of challenging for an eighth Cup title with JONATHAN INGRAM, in an article first published in the 15 February 2001 issue of Autosport magazine. Little did we know then what tragedy would unfold…

NASCAR Cup
Feb 18, 2021
The lasting NASCAR legacy after Dale Earnhardt’s death Prime

The lasting NASCAR legacy after Dale Earnhardt’s death

On February 18, 2001, seven-time NASCAR Cup champion Dale Earnhardt – the fearless ‘Intimidator’ – was in his element at Daytona International Speedway. While his own DEI team’s cars ran 1-2 towards the finish line, his famed #3 Richard Childress Racing Chevrolet Monte Carlo was playing rear gunner to block any late runs from the chasing pack. As the cars tore through Turns 3 and 4 on that fateful final lap, Earnhardt maintained the strongarm tactics that encapsulated his persona… but his actions in those moments sadly proved to be his last.

NASCAR Cup
Feb 18, 2021
Inspired by Pitbull, the “revolution” sweeping through NASCAR Prime

Inspired by Pitbull, the “revolution” sweeping through NASCAR

The NASCAR Cup Series is changing. Whether it be the gradual morphing out the seasoned drivers of yesterday as the next generation step up, a radical calendar shake-up featuring more road courses than ever before and the prospect of an all-new car on the horizon, stock car racing’s highest level is nearing the end of a huge facelift.

NASCAR Cup
Feb 16, 2021
The NASCAR storylines to watch out for in 2021 Prime

The NASCAR storylines to watch out for in 2021

This weekend's Daytona 500 kickstarts a NASCAR Cup season that promises plenty of intrigue courtesy of new owners and a refreshed calendar. Here's what you need to know ahead of the new season…

NASCAR Cup
Feb 13, 2021
Why Kyle Larson can't blow his big shot at redemption Prime

Why Kyle Larson can't blow his big shot at redemption

From a disgraced NASCAR exile, Kyle Larson has been given a chance of redemption by the powerhouse Hendrick Motorsports squad. Effectively replacing seven-time champion Jimmie Johnson is no easy billing, but Larson has every intention of repaying the team's faith...

NASCAR Cup
Feb 11, 2021
Why Roger Penske is an American motorsport icon Prime

Why Roger Penske is an American motorsport icon

In this exclusive one-on-one interview, Roger Penske reveals the inner drive that has made him not only a hugely successful team owner and businessman but also the owner of Indianapolis Motor Speedway and IndyCar. He spoke to David Malsher-Lopez.

IndyCar
Dec 28, 2020
Why NASCAR's latest second-generation champion is just getting started Prime

Why NASCAR's latest second-generation champion is just getting started

Chase Elliott's late charge to the 2020 NASCAR Cup title defied predictions that it would be a Kevin Harvick versus Denny Hamlin showdown. While the two veterans are showing no signs of slowing down, Elliott's triumph was a window into NASCAR's future…

NASCAR Cup
Nov 18, 2020
Why Kyle Larson deserves his second chance in a cancel culture Prime

Why Kyle Larson deserves his second chance in a cancel culture

“You can’t hear me? Hey n*****” Those fateful words uttered by Kyle Larson, spoken into his esports headset on April 12, were directed at his sim racing spotter – but instead they quickly became amplified around the world via social media, including his own Twitch stream.

NASCAR Cup
Oct 29, 2020