Tepper company, contractor reach $60 million bankruptcy deal. Rock Hill, York County out?
The real estate company created by Carolina Panthers owner David Tepper to build the failed team headquarters in South Carolina has filed a proposal in bankruptcy court that would pay the project’s general contractor $60 million, court documents show.
And the general contractor apparently is in agreement.
A federal bankruptcy judge must approve the $60 million proposal, and the contractor creditors must vote on it before it becomes official, court documents show.
This most recent proposal, filed Friday morning, appears to now narrow the legal and bankruptcy battles to GT Real Estate and mainly the City of Rock Hill and York County. The city, county and GT Real Estate are engaged in lawsuits disputing as much as $100 million the city and county claim is owed.
Friday’s bankruptcy proposal takes away any possible guaranteed payment to York County and Rock Hill, documents show. GT Real Estate claims in court documents it owes the county and city nothing.
GT Real Estate was created by Tepper to build the team practice site and headquarters. Earlier this year GT Real Estate stopped construction and filed bankruptcy in a dispute over money for the project.
The new proposal
In an amended bankruptcy filing Friday, GT Real Estate stated Mascaro/Barton Malow (MBM), the general contractor, agreed Thursday to support the $60.5 million deal. The agreement also says MBM would halt efforts for a venue challenge that would move the bankruptcy case from Delaware to South Carolina.
“On September 15, 2022, the Debtor, MBM, and the Plan Sponsor entered into a plan support agreement (the “Plan Support Agreement”) that requires MBM to (1) vote all claims to accept the Plan, (2) not oppose, the Plan, the Disclosure Statement, or any other pleadings or documents that the Debtor files that is consistent with the Plan, and (3) withdraw MBM’s Motion to Transfer Venue (as defined herein) and any joinders thereto,” the filing states.
Michael Roeschenthaler, lawyer for MBM, confirmed in an email to The Herald that MBM has agreed to the $60 million GT Real Estate bankruptcy proposal.
MBM has not yet filed any documents about the proposal in court.
Affected subcontractors who would be paid by the proposal still have to vote to approve the plan.
Construction had been underway on the Panthers site off Mount Gallant Road in Rock Hill, S.C., before GT halted work in March and filed for bankruptcy in June.
GT cuts out Rock Hill, York County guarantee
A previous bankruptcy plan in August would have paid the contractors $60 million, York County $21 million plus interest, then paid the city after the property eventually sold. The city initially asked for $20 million
But in documents filed Tuesday and Friday, GT altered the plan to pay the contractors first. Documents in the case filed by GT Real Estate in a disclosure statement say GT Real Estate owes York County and Rock Hill nothing, and relegates the city and county to a part of the bankruptcy claim where creditor claims are disputed, documents show.
GT Real Estate stated in court documents that the ongoing lawsuits by the county and city pushed GT to remove York County and Rock Hill payments until after the contractors get paid.
“This attempt by the Debtor and the Plan Sponsor to lead all parties to a near-term, consensual outcome was instead followed by exorbitant counter-demands and unreasonable conduct from both the County and the City,” GT Real Estate lawyers wrote.
What happens now?
Nether the city of Rock Hill nor York County have filed legal documents responding to the most recent proposal.
York County and Rock Hill have pending legal motions that seek to have the bankruptcy and lawsuits heard in South Carolina courts instead of Delaware.
York County’s lawyers have said previously GT has broken promises in the deal.
Rock Hill officials have said its lawsuit against GT -- alleging dishonesty and fraud, and that it was not required to issue millions in bonds for the site -- speaks for itself. City officials said Rock Hill looks forward to its day in court.
Efforts to reach city of Rock Hill and York County officials and their lawyers for comment on the contractor agreeing to the bankruptcy were unsuccessful Friday.
Check back for updates on this story.
This story was originally published September 16, 2022 at 12:24 PM with the headline "Tepper company, contractor reach $60 million bankruptcy deal. Rock Hill, York County out?."
