Bid of $1.8 million submitted for BK Racing

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A bid of $1.8 million has been made for BK Racing, the trustee operating the team stated in court documents.

Trustee Matthew Smith stated in federal court documents that the $1.8 million bid is a stalking horse bid. That means that the bid sets the lowest price the team can be sold.

Should the stalking horse bid be the winning bid, $350,000 of the price will go to payment of priority wage claims.

The bid is from MRB LLC.

ESPN.com reported that Mike Beam, president of GMS Racing, has made the bid on the team. Beam told ESPN.com that if he becomes the owner of the team, it would be an affiliate of GMS Racing, which has previously considered moving to Cup.

Court documents state: “The Trustee believes that the Stalking Horse Bid will compel potential purchasers to come forward and otherwise generate additional interest in the Race Team Assets reasonably likely to facilitate an effective competitive sale of such assets.”

Smith stated in court documents that he has communicated with more than 25 separate parties interested in acquiring the team’s assets.

Court documents state that any qualified bidder must propose a bid at least $300,000 more than the original bid of $1.8 million.

A sale is scheduled for 9:30 a.m. ET on Aug. 20. A court hearing is set for Aug. 21 for the approval of the sale. The winner has three days after the court order approving the sale to complete the purchase.

A hearing is set for Tuesday on approving those sale procedures.

Also, in another court filing, Smith stated that he’s agreed to sell team assists to Obaika Racing for $265,000. Smith said in court documents the assets were valued at $382,000.

Among the items listed in the offer is a tractor trailer transporter, seven bare chassis and 12 other chassis in various forms of construction. Also on the list are two crash carts, pit road tool box and pit suite, pit tool cart and two golf carts.

BK Racing owner Ron Devine put the team in chapter 11 bankruptcy on Feb. 15 in an effort to retain his team. Union Bank & Trust claims that it is owed $9.475 million. Smith was approved as the trustee on March 28, relieving Devine of his owner duties. Others claiming to be owed money include the Internal Revenue Service.

Blake Jones is driving BK Racing’s No. 23 car this weekend at New Hampshire Motor Speedway. This will be Jones’ first Cup start. He qualified last in the 37-car field.