CHARLOTTE, N.C. — BK Racing owner Ron Devine said during a bankruptcy court hearing Thursday that he plans to make a bid to reclaim his NASCAR Cup team.
A bankruptcy judge approved a plan for BK Racing to be sold Aug. 20 (with bids due Aug. 13). A hearing is scheduled Aug. 21 so the court can approve the winning bidder.
There is a bid for $1.8 million for the team from Mike Beam, president of GMS Racing. Bids will start from there for BK Racing. Joining Beam in court Thursday as an observer was GMS Xfinity driver Spencer Gallagher.
Devine put BK Racing in Chapter 11 bankruptcy on Feb. 15. He said a day later that he made the move to prevent Union Bank and Trust, which claims it is owned more $9 million, from taking over the team and selling the charter. The IRS also claims it is owed money, along with several other groups and individuals.
A trustee was approved by the court to oversee the team, removing Devine from power, on March 28. The trustee has since determined that selling the team is the best route.
Trustee Matthew Smith defended his reasoning for selling the team on Tuesday by telling the court: “One of the reasons, and I know that Mr. Devine is in the room and probably doesn’t want to hear this, but I think one of the reasons this team is in trouble is it had the wrong owner. So I believe the right owner, transition of ownership, would be the best thing for this team.”
Smith provided testimony on Tuesday that “the cash flow (for the team) is exceptionally tight.”
He also said on the stand: “My current cash forecast … does show sufficient cash if I needed to go to the end of the season. I do not have the ability to run much past the end of the season.”
Smith said in court that since news of the plan to be sold, he has heard from 29 parties interested in BK Racing.
In court Thursday, Devine blamed the bank for the move to sell the team next month.
“It’s a fire drill …. driven by the bank,” Devine said.
The organization has three career top-10 finishes. The organization is running only the No. 23 car this season. That car ranks 34th among the 36 charter teams in owner points.