CHARLOTTE, N.C. – A U.S. Bankruptcy judge stripped Ron Devine of financial control of BK Racing on Wednesday, appointing a trustee to take over and operate the team going forward.
U.S. District Court Judge J. Craig Whitley issued the decision, with Matthew Smith of The Finley Group assuming command of the seventh-year Monster Energy NASCAR Cup Series team as the trustee.
Devine has been a part of BK Racing from the team’s inception in 2012, teaming with co-owner and tomato grower Wayne Press and former Red Bull Racing Team director Thomas Uberall to purchase the assets of the Red Bull team.
Whitley’s decision allows the team to continue to race for the time being.
“I think it’s in everyone’s best interests that this business continue in the short run,” Whitley said in making his ruling. “(But) we cannot continue to [have this bankruptcy] operate in an out-of-control manner.”
As the trustee, Smith will be charged with determining whether or not BK Racing remains viable enough to make money. If determined that the team is not financially viable, a sale of the team’s assets – including its NASCAR charter – is among the available options.
“The goal is to find a way to race as long as they can,” Smith said Wednesday from the stand.
BK Racing’s creditors have until April 26 to file claims with the court.
NBC Sports reported Wednesday that Union Bank & Trust claims it is owed more than $8 million, while ESPN’s Bob Pockrass reported that the bank claims $11.47 million in loans and interest is owed. The IRS has stated that BK Racing owes it more than $2 million.
BK Racing has fielded the No. 23 Toyota in all six Monster Energy NASCAR Cup Series races held so far this season, with Gray Gaulding as the driver and EarthWater as the sponsor. The team is 35th in car owner points after Monday’s STP 500 at Martinsville (Va.) Speedway.
The future of the team’s charter remains up in the air, with NASCAR providing no real answers following Wednesday’s court proceedings.
“We have a clear process around charter member governance,” said NASCAR in a statement. “It is incumbent upon charter members to be ready to race and compete at the highest level.”
Devine’s feelings were clear, however. He was disheartened at the outcome and unsure whether he would work with Smith going forward, despite Judge Whitley’s encouragement that he do so.
“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.”
“It’s a sad day for BK,” Devine added later as he left the courthouse. “It’s come a long way.”
