‘Unreasonable demands’: Tepper’s real estate company removes Rock Hill and York County from creditor payout plan
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Carolina Panthers Rock Hill facility rendering courtesy of Tepper Sports and Entertainment
David Tepper’s real estate arm, GT Real Estate, has an amended plan for repaying creditors that may limit how much and when the city of Rock Hill and York County get repaid.
Driving the news: The amended plan would repay $60.5 million to creditors. But GTRE rescinded its August offer to repay the city and the county.
- GTRE initially proposed providing York County $21.165 million for its contributions to the project, plus interest and $20 million or more from the net proceeds, after clean-up and senior claims, from the sale of the property to Rock Hill.
Why it matters: How much and when York County and Rock Hill will get paid will be determined in bankruptcy court. GTRE’s legal filing Tuesday is the latest volley in an ongoing legal battle over the massive canceled Rock Hill project.
By the numbers: GTRE’s new legal action lists York County claiming more than $80 million, plus $43 million for Mt. Gallant Road damages, which the filing calls “duplicative of the $21 million payment that it is also seeking to recover, and $38 million of forecasted lost tax revenue.”
Context: GTRE filed for bankruptcy in June, and York County demanded their money back, plus interest the next day. Rock Hill took legal action against GTRE last week, claiming GTRE committed fraud against the city.
- In response, GTRE said in a statement the city and county demands are “exorbitant,” “unreasonable” and “in excess of their entitlements.”
Rock Hill told Axios they have, “no comment on these legal matters except to note generally that the City Council is looking forward eagerly to the day judgment is rendered on the facts that will be presented in court.”
Full GTRE statement: “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.”
Go deeper: Rock Hill alleges Tepper real estate holding company committed fraud against the city