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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Texas Truck race results: Carson Hocevar scores first series win

Texas Truck race results
Photo by Chris Graythen/Getty Images
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Carson Hocevar was in front after the leaders crashed in overtime and scored his first NASCAR Craftsman Truck Series victory Saturday at Texas Motor Speedway.

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Rookie Nick Sanchez, who led 168 of the 172-lap race, dueled reigning series champion Zane Smith on the last lap when Sanchez’s truck hit Smith’s. As Sanchez tried to regain control of his vehicle, he was hit from behind by Hocevar. That contact sent Sanchez into Smith. Christian Eckes also was collected.

Hocevar’s first win came in his 59th series start.

Chase Purdy placed second. Stewart Friesen finished third. Ty Majeski was fourth. Jake Garcia completed the top five.

 

Richmond Xfinity results, driver points

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RICHMOND, Va. — Chandler Smith won a stage, led a race-high 83 laps and rallied late to score his first career Xfinity win Saturday at Richmond Raceway.

MORE: Richmond Xfinity results

MORE: Xfinity points after Richmond race

John Hunter Nemechek placed second. The rest of the top five featured Josh Berry, Kaz Grala and Cole Custer. Austin Hill, who had won three of the first six races of the season, placed ninth.

Hill continues to lead the points. He has a 12-point advantage on Riley Herbst and an 18-point lead on Nemechek heading into the next series race in two weeks at Martinsville.

Chandler Smith scores first career Xfinity win with Richmond victory

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RICHMOND, Va. — Chandler Smith held off John Hunter Nemechek to win his first career NASCAR Xfinity Series race Saturday at Richmond Raceway.

The 20-year-old Smith took the lead with 12 laps to go and withstood a restart with six laps to go to earn the victory for Kaulig Racing.

MORE: Richmond race results, driver points

His victory came about a month after being passed for the lead with two laps to go at Las Vegas and finishing third day.

“It obviously wasn’t in God’s works for me that and I was fine with that, I was good with that,” said Smith, who will make his Cup debut Sunday. “I knew there was something bigger and better that He was playing it out for me and I just had to be faithful and keep on trucking. Here’s proof of it.”

Nemechek was second. Josh Berry placed third and was followed by Kaz Grala and Cole Custer.

Justin Allgaier finished 13th to win the $100,000 Dash 4 Cash bonus.

“Today was weird because of how we finished,” Allgaier said. “Given the same circumstances a year ago, two years ago, three years ago, 13th wasn’t going to win the Dash 4 Cash but today it did.”

Stage 1 winner: Chandler Smith

Stage 2 winner: Josh Berry

Who had a good race: A caution caught Justin Allgaier a lap down, ending his chances for a top-five finish but he was able to bounce back and win the Dash 4 Cash for a fifth time. … Derek Kraus finished 10th in his Xfinity debut. … Chris Hacker placed 14th in his Xfinity debut.

Who had a bad race: Riley Herbst had his career-long streak of top-10 finishes snapped after nine races. He placed 23rd after he was hit and spun late in the race.

Notable: This is the second time in the last four races that there has been a first-time series winner. Sammy Smith scored his first series win last month at Phoenix.

Next: The series is off until April 15 at Martinsville Speedway (7:30 p.m. ET on FS1).

Daniel Suarez, Ross Chastain move on from COTA incident

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RICHMOND, Va. — Daniel Suarez says he’s been trying to “work on myself” after conflicts with teammate Ross Chastain and Alex Bowman last weekend at COTA but noted that if NASCAR doesn’t make adjustments with restarts on road courses, he’ll change his driving style.

NASCAR fined Suarez $50,000 on Wednesday for hitting another vehicle on pit road after the race. Suarez hit Chastain’s car at pit entrance and hit the back of Bowman’s car while they were both on pit road.

MORE: Cup starting lineup at Richmond 

“I’ve been trying to work on myself mostly during the week, trying to clear my mind and reset,” Suarez said Saturday at Richmond Raceway. “My team, we’re good. I think the issue wasn’t really with one driver. I feel like it’s more as an industry, how we are allowing to have those kind of bump-and-run restarts at the end of the races at road courses.

“I don’t think that’s right.”

Suarez restarted fifth in the second overtime restart. Alex Bowman, with Ross Chastain and Chase Briscoe aligned behind, charged and got beside Suarez as they approached Turn 1.

As Bowman slowed to make the tight turn, he was hit from behind and that sent him into Suarez, who clipped the left rear of Martin Truex Jr.’s car. Truex spun in front of Suarez and blocked his path, allowing the rest of the field to go by. Suarez finished 27th.

Chastain said he and Suarez have moved on from last week’s incident after talking this week.

“Every household on this earth has their moments of arguments and we had ours,” Chastain said Saturday.

“We’re family. We’re in the same house, right. It’s in our name. It’s Trackhouse. No matter what, we all think we have to put that behind and know that moving forward we’re brothers. … We’re brothers at Trackhouse and we’re going to be stronger together.”

Suarez is among the number of drivers who have raised concerns about the rough driving in the series. The Next Gen car is more durable and can take more hits — as evident in the Clash at the Coliseum to start the year when drivers barreled into the back of cars in the corners to slow down.

Add the emphasis of winning, less respect for one another and the result is the type of racing on display at the end of the race at Circuit of the Americas, as drivers charged down a long straightaway before braking hard for a tight turn and making contact with one another.

So, what can be done?

“I don’t have the answers to that,” Suarez said. “All I know is that NASCAR is working toward trying to make a better solution for some of these restarts. It doesn’t look right. This sport looks embarrassing.

“That’s not real. Just go into the corner and bump three cars to push people out of that way, that’s not real. We know that. That’s how some people got top fives and top 10s last week and some of the guys that were fast, like myself, finished 27th.

“If NASCAR does something about it, that’s amazing. If they don’t I’ll just join the party.”