Bankruptcy judge appoints trustee to manage BK Racing

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CHARLOTTE, North Carolina – A U.S. Bankruptcy Judge assigned a trustee to take over BK Racing and replace car owner Ron Devine as the team’s financial decision maker Wednesday evening.

“It’s a sad day for BK,” Devine said after leaving the federal courthouse.

Said NASCAR in a statement: “We have a clear process around charter member governance. It is incumbent upon charter members to be ready to race and compete at the highest level.”

The judge’s decision allows the team to continue to race. One of the roles of the trustee will be to determine if the team remains a viable business and can make money. If not, an option would be to sell the team’s assets, including its charter.

“I think it’s in everyone’s best interests that this business continue in the short run,” Judge J. Craig Whitley said in making his ruling.

The team ranks 35th in car owner points after Gray Gaulding‘s 36th-place finish Monday at Martinsville Speedway.

Matthew Smith, managing director of The Finley Group, will oversee the BK Racing’s finances.

“The goal is to find a way to race as long as we can,” Smith said on the stand Wednesday.

Smith, a member of the North Carolina Motorsports Advisory Council for three years, noted that it was not clear how much cash BK Racing has, citing incomplete records and documents not filed in court.

Union Bank & Trust claims it is owed more $8 million. The IRS states that the team owes more than $2 million. Creditors have until April 26 to file claims.

BK Racing filed for Chapter 11 bankruptcy on Feb. 15. Devine said on Feb. 16 that he filed for bankruptcy “because the bank wouldn’t stop trying to get a receiver (to oversee the team’s collateral). The only reason they wanted to get a receiver was to push the charter off to their third-party offer. That’s where the problem was.’’

BK Racing has not shown a profit since debuting in 2012. Court documents show that the team lost nearly $30 million from 2014-16.

A former employee and a current employee of the team both testified Wednesday of paychecks that bounced last year. Former tire specialist Jason Postma testified he had a BK payroll check bounce in September 2017 and had BK payroll checks bounce in November 2017 and December 2017 before leaving the team.

“We need someone to step in temporarily and stop this from snowballing,’’ testified Jeff Lemons, who runs the machine shop at BK Racing, on having a trustee appointed.

The team sold one of its charters before the 2017 season to Front Row Motorsports for $2 million. Devine, who spent five hours on the stand over two days, stated in court and he thought the bank’s goal is to sell the charter to recoup some of money owed.

“I’m disappointed, obviously,” Devine said of Wednesday’s decision. “We’ll see. The judge made his ruling. I respect that. We’ll talk about if there’s a next step, an appeal or anything like that.”

Devine said he planned to talk to sponsor EarthWater, which had signed an agreement last week to sponsor the team for the rest of year. The contract is valued at $3.6 million and can be paid in cash, EarthWater stock and product. There is a clause in the contract that the contract is null and void if Devine is not operating the team.

The judge encouraged Devine and BK Racing’s employees to work with Smith, the trustee, to help the team recover from its financial debt. Devine said he was unsure if he would do so.

“My sense is that he probably just wants me to get out of his way,” Devine said.

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GMS Racing reveals full-time driver-crew chief lineup, number assignments

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GMS Racing has announced its full-time driver-crew chief lineup for the 2020 Gander RV & Outdoors Truck Series season and number assignments for its trucks:

– Chad Norris has been named crew chief for Brett Moffitt and the No. 23 Chevrolet team. Moffitt drove the No. 24 in his first season with the team. Norris has been with GMS Racing for two years and directed the effort that delivered the team its 2018 Xfinity Series win at Talladega.

– Chad Walter will lead Tyler Ankrum and the No. 26 team. 2020 will be Ankrum’s first season with GMS Racing. Walter served as an engineer for Ankrum this season at DGR-Crosley. Walter has five wins and 42 top fives in 208 Xfinity Series starts as crew chief.

– Kevin “Bono” Manion is paired with Zane Smith on the No. 21 Chevrolet. 2020 will be Smith’s first full-time Trucks season after competing part-time for JR Motorsports in the Xfinity Series. Manion has 24 wins as crew chief across all three national series since 2003. He led Martin Truex Jr. to his two Xfinity Series titles.

– Jeff Stankiewicz will remain as the crew chief for the No. 2 team piloted by Sheldon Creed.

Social Roundup: How NASCAR drivers are spending their offseason

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NASCAR’s Champion’s week is now behind us and we are firmly in the offseason.

Well, sort of.

The NASCAR world never really stops, which is evident simply due to the continued announcements for the 2020 season.

But with Joey Logano testing the Next Gen car at Phoenix earlier this week and Dale Earnhardt Jr. helping clean up North Wilkesboro Speedway for iRacing, it’s been anything but quiet.

Here’s a look at what else happened in the NASCAR community this week.

Someone needs to check in on Jimmie Johnson, he could be in his own version of Mr. Mom.

Chris Buescher is home again.

The 2015 Xfinity Series champion is back at Roush Fenway Racing for the 2020 Cup season and he’s got the firesuits and cars to prove it.

Brad Keselowski recently became father to a second daughter.

He’s now learning some important life lessons.

Former Front Row Motorsports driver Matt Tifft is now off the market after getting married to his fiance, Jordan. Now they’re on their honeymoon.

 

Matt DiBenedetto showed off one of the perks of being a Wood Brothers Racing employee.

Ryan Blaney and Bubba Wallace went somewhere warm to start their holiday.

Joey and Caitlin Gase welcome twin sons

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Xfinity Series driver Joey Gase and his wife Caitlin are now parents to twin boys

The babies were born on Wednesday. Their names are Jace and Carson.

More: Brad and Paige Keselowski welcome second daughter

Silly Season Scorecard: Front Row Motorsports adds John Hunter Nemechek

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Front Row Motorsports filled one of the last major vacancies in the NASCAR Cup Series when it announced Thursday John Hunter Nemechek will compete for the team full-time in the No. 38 Ford.

With the announcement also came the news the team is retracting to two cars after fielding three in 2019.

As a rookie, Nemechek will have Michael McDowell as a teammate.

Here’s how the rest of NASCAR’s Silly Season has played out so far.

ANNOUNCED CUP RIDES FOR 2020

No. 00: Quin Houff will race for Star Com Racing full-time. Announced Nov. 27.

No. 1: Chip Ganassi Racing announced on Nov. 1 a multi-year extension with Kurt Busch.

No. 6: Roush Fenway Racing announced Oct. 30 that Ryan Newman would return to the car as part of the news that Oscar Mayer would sponsor the No. 6 through 2021.

No. 8: Richard Childress Racing made it official Oct. 2 that Tyler Reddick will move to Cup in 2020 and drive the No. 8 car.

No. 10: Aric Almirola confirmed Oct. 11 he signed an extension to race for Stewart-Haas Racing.

No. 13: Ty Dillon posted a video Sept. 6 on Instagram refuting rumors that he would retire after this season. He has a contract with Germain Racing through 2020.

No. 14: Clint Bowyer was announced Oct. 17 as returning to Stewart-Haas Racing for a fourth season.

No. 15: Brennan Poole will make his Cup debut and will drive for Premium Motorsports full-time. Announced Dec 11.

No. 17: Chris Buescher will take over the Roush Fenway Racing No. 17 ride in 2020 after the team announced Sept. 25 that it would part ways with Ricky Stenhouse Jr. after this season.

No. 20: Joe Gibbs Racing announced Sept. 6 that it had signed Erik Jones to an extension. It is a one-year extension for the 2020 season.

No. 21: Matt DiBenedetto replaces Paul Menard at Wood Brothers Racing (announcement made Sept. 10). DiBenedetto’s deal is for 2020 only.

No. 32: Corey LaJoie will return for a second straight full season with Go Fas Racing and the No. 32 Ford. The team announced on Nov. 1 it would enter a technical alliance with Stewart-Haas Racing next year.

No. 37: Ryan Preece moves over from the No. 47 to the No. 37. He will have a new crew chief, Trent Owens, who has been crew chief on the No. 37 for the past three seasons.

No. 38: John Hunter Nemechek replaces the now retired David Ragan for Front Row Motorsports. Announced Dec. 12.

No. 41: Stewart-Haas Racing announced Nov. 15 Cole Custer will replace Daniel Suarez.

No. 47: JTG Daugherty Racing announced Oct. 16 Ricky Stenhouse Jr. will join Ryan Preece at the two-car team, essentially swapping seats with Chris Buescher. On Dec. 2, the team announced Stenhouse will drive the No. 47, with Brian Pattie serving as his crew chief.

No. 95: Christopher Bell moves to Cup in 2020 and will drive for Leavine Family Racing (announcement made Sept. 24).

Rick Ware Racing: JJ Yeley will drive one of the team’s three full-time rides.

 

YET TO ANNOUNCE DEALS FOR 2020

Daniel Suarez — The driver revealed Nov. 14  he would not return to Stewart-Haas Racing in 2020 after one season driving the No. 41.

 

ANNOUNCED PLANS IN OTHER NASCAR SERIES

Xfinity Series 

Ross Chastain – Kaulig Racing announced Oct. 15 he would compete full-time for the team in 2020 driving the No. 10 Chevrolet, joining Justin Haley.

Joe Gibbs Racing — Announced Oct. 17 Harrison Burton will drive its No. 20 Toyota full-time in 2020. Announced Oct. 31 Brandon Jones would return for a third year in the No. 19. Revealed Nov. 5 it would field a third full-time entry with Riley Herbst in the No. 18.

JR MotorsportsJustin Allgaier will return to the team for a fifth year in the No. 7 Chevrolet. The No. 8 car will be driven by Daniel Hemric for 21 races, Jeb Burton 11 races and Dale Earnhardt Jr. for one race. Noah Gragson will also return for a second season in the No. 9 car, while Michael Annett returns for a fourth year with the team in the No. 1 car.

Richard Childress Racing — Will field a part-time car in the No. 21, which will be shared by Myatt Snider and Anthony Alfredo.

Stewart-Haas Racing – The team has not announced plans for the No. 00 Ford with Cole Custer moving to Cup or whether Chase Briscoe will return to the No. 98.

JD MotorsportsJesse Little will compete full-time for the team.

 

Truck Series

GMS RacingDriver lineup will include Brett Moffitt, Sam Mayer, Sheldon Creed and Tyler Ankrum

Kyle Busch MotorsportsRaphael Lessard will drive the No. 4 full-time while Christian Eckes will drive the No. 18 full-time.

Halmar Friesen Racing — Stewart Friesen will return for a third full-time season in the No. 52 Truck. The team will also switch from Chevrolet to Toyota Trucks in 2020.

Hattori Racing EnterprisesAustin Hill will return to the No. 16 Toyota for a second year.

Niece Motorsports: Ty Majeski will drive the No. 45 truck full-time, taking the place of Ross Chastain. Announced Dec. 10.

DGR-Crosley: Has not made any driver announcements, but will switch from Toyota to Ford. Announced Dec. 11.

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