Who’s the target? Tepper co., Rock Hill, York County bankruptcy battle over biz list
A lawyer for the real estate company created by Carolina Panthers owner David Tepper to build the failed Rock Hill headquarters project said in a bankruptcy court hearing Monday that they are concerned about being targeted for future lawsuits.
The lawyer for GT Real Estate is asking that some affiliated Tepper companies be released from the threat of legal action, testimony showed.
GT Real Estate was the company created by Tepper to build the then-planned Panthers headquarters and practice facility. Construction had been underway on the site off Mount Gallant Road in Rock Hill, S.C. The project was abruptly halted last March in a dispute over money and GT Real Estate declared bankruptcy in June.
An avalanche of legal maneuvers has ensued -- and continues.
York County has sued GT Real Estate and three other Tepper companies -- DT Sports Holding, Tepper Sports Holding and Appaloosa Management -- alleging conspiracy and that they squandered money.
Court documents show York County’s claims are for as much as $80 million.
Rock Hill’s $20 million lawsuit against GT Real Estate alleges fraud and dishonesty by that company. GT Real Estate denies claims made by both the county and city.
In bankruptcy documents filed last week, GT Real Estate proposed that it would neither guarantee $21 million to York County nor any payment to Rock Hill, and would move their claims to a contested claims category in the bankruptcy case.
A lawyer for Rock Hill said Monday morning during the court hearing in Delaware that the city is “prepared for battle” against confirmation of any bankruptcy deal where the city would receive no guaranteed money.
GT Real Estate says it owes the county and city nothing, court documents show.
Target list for lawsuits?
Will Guerreri, one of the lawyers for GT Real Estate, said the company is concerned there will be more lawsuits against other companies affiliated with GT Real Estate if they are named in court documents.
“We are concerned about an end run for litigation against other parties,” Guerreri said during Monday’s Zoom hearing from Delaware federal bankruptcy court.
York County and Rock Hill want a list of companies that would be released from the bankruptcy case.
Guerreri said if that list is public, it creates potential targets for lawsuits.
“You are creating a target list,” Guerreri said.
Rock Hill and York County lawyers want a complete list of all companies related to GT Real Estate and the bankruptcy.
“We are preparing for the confirmation battle,” Chuck Gibbs, lawyer for Rock Hill, said in the hearing.
Derek Baker, lawyer for York County, said in court that York County needs to know who would be released.
A chart of companies was included in recent court filings by lawyers for GT Real Estate. That chart includes Tepper-owned companies DT Sports Holding, Tepper Sports Holding, Appaloosa Management and some other Tepper entities, testimony showed.
There are “significant concerns” over the cost of defending against other legal claims, Guerreri said in court.
Rock Hill, York County ready for legal battle
GT Real Estate stated in court documents that the ongoing lawsuits by the county and city pushed GT to relegate bankruptcy payments for York County and Rock Hill until after contractors get paid.
In a recent document, GT Real Estate has proposed paying $60 million to contractors and subcontractors.
The Carolina Panthers team would now recoup bankruptcy money before Rock Hill under the new plan, Gibbs said in court.
“It’s no secret that this plan is not in the best interests of my client,” Gibbs said in the hearing.
The most recent bankruptcy proposal from last week is worse for Rock Hill than an original bankruptcy proposal offered in August. The proposal in August would possibly have allowed Rock Hill to recoup $20 million of taxpayer money invested in the project. That money would have come after the property was sold, Gibbs said.
York County claims it invested $21 million in road tax money that GT misused.
Delaware bankruptcy Judge Karen Owens, who presided over Monday’s hearing, has not yet ruled on the listing of the affiliate releases or on the overall bankruptcy proposal.
Owens said in court a confirmation hearing on the bankruptcy overall plan will likely come in November.
Contractor plan gets approval to move forward
Owens did approve a bankruptcy disclosure statement that allows the process to move forward -- even as Rock Hill and York County fight it.
In the proposed plan, contractors considered secured creditors in the bankruptcy would receive around $60 million. If approved by creditors, contractors and subcontractors could receive money as soon as the end of 2022, court testimony showed.
This story was originally published September 19, 2022 at 2:09 PM with the headline "Who’s the target? Tepper co., Rock Hill, York County bankruptcy battle over biz list."
