US Court of Appeals rules former NASCAR team owner pay $31M
Today at 04:00 AM
The ruling is related to the bankruptcy of BK Racing
Ron Devine was the owner of BK Racing who raced in the NASCAR Cup Series. The team went bankrupt following the 2018 season.
NASCAR team files for bankruptcy ahead of Daytona 500 (February 15)
The owner was indicted in 2023 with four counts of failure to pay payroll taxes.
The team sold their charter to Front Row Motorsports. However, Union Bank & Trust Company claimed that they owned the charter that was sold.
In 2022, A judge originally ruled that Devine was ordered to pay $31M to the trustee.
Devine elected to take that ruling to the U.S. Court of Appeals. Now, they have elected to uphold that ruling.
Per Bob Pockrass the ruling read, “The bankruptcy court exhibited extraordinary patience in the face of Appellants' egregious conduct. This Court will not condone such blatant disregard for the judicial process.”
In 2019, there were 78 claims against the team totaling $44,295,884.91. $9,000,000 of which came from a bank loan to keep the team operational.
Many employees of the team were also not paid toward the end of team operations.
Bank opens lawsuit, seeking charters (November 2017)
Links
BK Racing | Front Row Motorsports | NASCAR
The post US Court of Appeals rules former NASCAR team owner pay $31M appeared first on Racing News.
