Panther Practice Bankruptcy Update – Spectrum News | Vette Leader

The bankruptcy proceedings surrounding the Carolina Panthers’ canceled Rock Hill, South Carolina practice facility may be one step closer to completion.

In a news release Thursday, GT Real Estate Holdings LLC (GTRE) announced its bankruptcy reorganization plan.

what you need to know

  • GTRE said it plans to set aside $82 million for recovery payments
  • The reorganization plan was expected to be submitted to court for approval in the fall
  • It’s unclear how this will affect other litigation surrounding the canceled practice facility

GTRE, a company owned by David Tepper, owner of the Panthers and Charlotte Football Club, is in bankruptcy court in the District of Delaware over the practice facility project.

The still-incomplete project stalled in March before being canceled in April, according to previous reports from Spectrum News 1 and announcements by the parties involved. These parties include corporations affiliated with Tepper and then the City of Rock Hill and York County.

The site was originally intended to house the Panthers’ practice facility and other offices, with plans to make it a regional tourism attraction for sports fans.

However, the project was shelved due to funding concerns and allegations by many stakeholders of unmet financial commitments and expectations. Finally, Tepper’s representatives announced the termination of the project.

Since then, the bankruptcy court proceedings have been going on and took a new turn on Thursday.

In the press release, GTRE announced it would commit $82 million to “resolve eligible claims.”

These claims include $60.5 million for contractors and other workers on the project and $21.165 million for York County project contributions. The press release also states that it could “distribute $20 million or more of available net proceeds (after remediation and priority claims) from real estate sales to make payments to the City of Rock Hill.”

The proposed bankruptcy reorganization plan will be brought before the Delaware District Court in October and is subject to the approval of the parties involved.

“This plan reflects GTRE’s promise to expeditiously resolve all claims and make payments to its creditors, including York County and the City of Rock Hill. GTRE now has a clear path to emerge from bankruptcy, made possible by significant commitments from DT Sports Holding, which has provided GTRE with more than $82 million in cash to bring this process to an orderly and equitable conclusion bring. GTRE believes the plan is in the best interests of its creditors and expects to hold a hearing to consider approving the plan in October this year,” the release said.

It is unclear what impact the proposed plan will have on other litigation faced by the companies involved in the transaction.

In June, York County filed a lawsuit against the city of Rock Hill and companies allegedly representing Tepper. In the lawsuit, the county alleges the defendants owe the county taxpayers.

“The Tepper Defendants directed the misappropriation of $21 million of legally restricted public funds from their stated purpose of expanding a road in York County and improperly used those funds for their failed vanity project, the Carolinas’ headquarters and practice facility Panthers. Rather than fund the inflated project budget themselves, the Tepper defendants took money from York County and its taxpayers. Ultimately, the City of Rock Hill failed to issue the required bonds, the development project collapsed, and the City and the Tepper Defendants blamed each other for the failure. Both the city and the Tepper defendants have harmed York County and its taxpayers, and the county should be restored,” the lawsuit states.

GTRE’s bankruptcy reorganization plan, if approved, would reimburse York County for $21.165 million, which the press release said would include interest.

Spectrum News 1 has reached out to the City of Rock Hill and York County for comment on the bankruptcy reorganization plan announcement. Rock Hill declined to comment.

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