GT Real Estate’s $20 million DIP approved with modifications

By Sarah Lizee

Olympia, Wash., July 1 – GT Real Estate Holdings, LLC received final approval to access a $20 million debtor-in-possession facility, but with modifications to some of the documentation, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The modifications relate to permitted mechanic’s liens. Specifically, the debtor and lender agreed that permitted mechanic’s liens are senior in priority to the DIP liens and are not otherwise avoidable under any sections of the bankruptcy code, provided that the debtors’ rights, including audit rights, to reconcile and object to the amount of any particular permitted mechanic’s liens as part of the Chapter 11 case won’t be limited.

As previously reported, parent DT Sports Holding, LLC, which is owned by Carolina Panthers owner David Tepper, has agreed to provide the debtor with the $20 million of DIP term loan financing, inclusive of a $3.2 million prepetition promissory note.

The Charlotte, N.C.-based real estate company filed Chapter 11 bankruptcy on June 1 under case number 22-10505.

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