David Tepper’s real estate company owes nearly $50M, bankruptcy filing shows
GT Real Estate Holdings, the company billionaire owner David Tepper established for the Carolina Panthers’ headquarters project in Rock Hill, owes nearly $50 million to various entities involved in the work, according to bankruptcy documents it filed in Delaware on Wednesday night.
Its two biggest creditors are Mascaro and Barton Malow, the general construction contractors in charge of the site, and York County, South Carolina, which together are owed almost $48 million. The rest of the companies listed in the filing are owed much smaller amounts.
In response, GTRE filed for Chapter 11 bankruptcy late Wednesday night.
“In recent weeks, GTRE has been confronted with various claims, some valid and some not, from vendors, contractors and other third parties, including York County, SC,” the company said in a statement. “GTRE is taking this action to ensure legitimate claims are processed as fairly and expeditiously as possible under a court-supervised process, and to achieve the project’s orderly and safe wind-down. GTRE intends to resolve its legitimate obligations.”
GTRE owes 17 companies who had a role in the project nearly $50 million all together. Of that $50 million, the general contractors are owed $26.8 million; York County, $21 million, according to the filing.
Officials with the two construction companies did not respond to emails from The Charlotte Observer on Thursday seeking comment.
York County’s claim involves highway-project money it contributed to the project to widen a major road leading to the Panthers’ site.
“We believe those funds will be returned in full with interest, and County taxpayers are protected,” York County said in a news release Thursday. “We were prepared for this action, and fully expect a positive outcome for our citizens.”
Chapter 11 and bankruptcy
Charlotte bankruptcy attorney Andy Houston says a Chapter 11 bankruptcy filing often is an attempt to bring order to what can be a chaotic and adversarial process.
“It’s an effective and efficient way to work through complicated legal matters,” he said. “Filing bankruptcy stops all litigation and channels everything into one forum, the bankruptcy court.”
The three largest creditors in the GT Real Estate’s bankruptcy filing have combined claims of more than $48 million. All of those claims are listed as “disputed.” That means the creditors will be required to file proof of what they are owed with the court, Houston says.
Tepper’s company can contest the amounts. Even so, Houston says, bankruptcy court offers a far more streamlined process of administering assets and resolving disputed liabilities than, for example, lawsuits filed in state court.
The bankruptcy filing brings to close a nearly three-year partnership between Rock Hill and the Carolina Panthers that quickly soured in March.
The Panthers intended to build a state-of-the-art headquarters on a 240-acre property in Rock Hill. The facility, which began construction in the summer of 2020, was supposed to be the largest such facility in the NFL.
The project was also intended to be a sports and entertainment venue for events from soccer games to high school sports championships and corporate events and concerts, and would be an economic boost for the city and South Carolina.
But in March, GTRE halted construction on the property after the city failed to issue the bonds needed to fund the construction. The city insisted it had.
The two sides never reached an agreement on how they could pay for construction, and GTRE later sent the city of Rock Hill a letter terminating the agreement.
This story was originally published June 2, 2022 at 5:56 PM.
