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02/16 2018

BK Racing Files For Bankruptcy By:  SPEED SPORT Staff

 

BK Racing has filed bankruptcy. (NASCAR Photo)

DAYTONA BEACH, Fla. – Monster Energy NASCAR Cup Series team BK Racing has filed for Chapter 11 bankruptcy according to a report by ESPN.

The filing, which came Thursday prior to the Can-Am Duel at Daytona Int’l Speedway, came less than an hour before a hearing with Union Bank & Trust, which was requesting to appoint a receiver to take over BK Racing’s assets.

The bankruptcy filing by BK Racing halts all other court proceedings. The embattled race team has been battling financial difficulties for more than a year, which included hefty debts owed to engine supplier Race Engines Plus and Union Bank & Trust, among others. There is also a federal tax lien against BK Racing and the North Carolina department of commerce is also owed money.

Gray Gaulding, who was involved in a financial dispute with the team last year, is scheduled to drive for BK Racing during the Can-Am Duel Thursday evening at Daytona Int’l Speedway and the Daytona 500 on Sunday. The team is still expected to compete in both events.

BK Racing current owns one of 36 charters, which guarantees the team a starting position in every Monster Energy NASCAR Cup Series race. NASCAR, in a statement to NBC Sports, said BK Racing continues to be the owner of the charter.

“We have a clear process around charter member governance,” NASCAR officials told NBC Sports. “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.”