ROCK HILL, S.C. — New developments in the failed Panthers’ practice facility in Rock Hill and the effort to pay stakeholders who were working on the project.
David Tepper’s real estate company -- GT Real Estate Holdings -- submitted a new reorganization plan for its bankruptcy case on Wednesday.
[ ALSO READ: Tepper real estate group offers nearly $100 million for Rock Hill facility claims ]
York County, the city of Rock Hill and contractors associated with the build have all been asking for money.
The new proposal would essentially allow GTRE to pay the contractors before it pays the city and county government.
In a statement, the real estate company said, in part, “the City and County have … chosen to pursue a flawed litigation strategy, making exorbitant and unreasonable demands well in excess of their entitlements.”
GTRE goes on to say that the changes will prevent the city and county from, “delaying payment of the $60.5 million that has been reserved to pay trade creditors.”
Channel 9 reached out to officials with York County and Rock Hill when we learned of the latest development.
[ RECENT COVERAGE: Rock Hill files complaint against Tepper-led real estate entity in bankruptcy court ]
York County said it was working on a statement. We’ll share that with you as soon as we receive it.
The city of Rock Hill said it doesn’t comment on legal matters but broadly said that, “the City Council is looking forward eagerly to the day judgment is rendered on the facts that will be presented in court.”
Both parties will have a chance to respond to the reorganization in court before a judge ultimately decides whether to approve GTRE’s new plan.
The practice facility planned for the Carolina Panthers in Rock Hill fell through after GTRE pulled out of the project earlier this year. The Tepper-owned company claims Rock Hill failed to come through with funding that was promised.
York County is suing Rock Hill and GTRE for upward of $21 million in tax money it contribute for road upgrades near the site.
Full statement from GTRE:
“GTRE filed an amended Plan of Reorganization today to address the reactions of stakeholders to the original plan filed in August. GTRE’s original Plan of Reorganization would have paved the way for all creditors, including the City and County, to receive generous payouts on an expedited basis. Trade creditors have engaged constructively with GTRE, and their treatment under the amended Plan of Reorganization remains unchanged. Unfortunately, the City and County have instead chosen to pursue a flawed litigation strategy, making exorbitant and unreasonable demands well in excess of their entitlements. Under the amended Plan of Reorganization, the City and the County are treated similarly in accordance with their rights under the Bankruptcy Code and without the concessions that had been provided previously. These modifications are intended to prevent the City and County from causing further harm to the confirmation process and delaying payment of the $60.5 million that has been reserved to pay trade creditors.”
Statement from York County:
“Late Tuesday, September 13th, GT Real Estate LLC filed a modified Plan of Reorganization in the Delaware Bankruptcy Court. The County is still reviewing the modified plan. However, it is self-evident the modified plan is yet another example of broken promises from these Tepper entities. To date, the Debtor in its public pleadings, and others have made repeated assurances that the misappropriated $21 million of York County taxpayer money would be repaid. York County is disappointed these parties again appear to be going back on their word. To be clear, the County has not engaged in any unreasonable conduct in regard to the Debtor. Rather, the County has only sought reasonable compensation for its real and legitimate claims and the damages GT Real Estate and the other Tepper entities have left in their wake. The County will continue to pursue its claims and aggressively protect its interests and the interests of its citizens and taxpayers.”
PREVIOUS COVERAGE:
- Newly released financial records show trouble behind Panthers’ failed Rock Hill facility
- David Tepper’s real estate company files for bankruptcy over Panthers practice facility
- Tepper on Rock Hill practice facility: ‘We released a statement already’
- David Tepper’s company says it sent notice to terminate Panthers project in Rock Hill
- Deal or no deal? Local leaders want to hear from Panthers on paused Rock Hill HQ project
- As Panthers’ new HQ remains on hold, Rock Hill leaders say they’ve done their best
- Resolution by York County leaders supports Panthers project, but does it benefit taxpayers?
(WATCH BELOW: Tepper Sports pulls plug on Charlotte FC youth academy at Eastland site)
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