GT Real Estate reaches settlement with plan sponsor, city

By Sarah Lizee

Olympia, Wash., Nov. 14 – GT Real Estate Holdings, LLC is seeking court approval of a settlement with its parent and plan sponsor, DT Sports Holding, LLC, and the city of Rock Hill, S.C., according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware on Tuesday.

As previously reported, DT Sports is owned by Carolina Panthers owner David Tepper.

GT Real Estate was developed to own and develop a mixed-use community, sports and entertainment venue in Rock Hill, S.C., that would also include a new headquarters and practice facility for the Panthers. In 2020, GT acquired 234 acres located in York County, S.C.

But in March 2022, following default notices and the running of a cure period under agreements with the city, GT suspended work on the project and decided an orderly wind-down was the best path forward.

On Friday, the parties to the settlement reached an agreement that aims to resolve all pending litigation between the debtor and the city and secure the city’s support for a modified plan.

Under the settlement, the city will be granted an allowed class 5 claim in the amount of $20 million.

The debtor, plan sponsor and city will execute complete, mutual releases of all claims relating to the Chapter 11 case and the project and dismiss all litigation between the parties.

On the effective date of the plan, the reorganized debtor will transfer the project site and materials to the city, subject only to the first-lien note in favor of the plan sponsor and some obligations owed to the state of South Carolina.

The city will purchase all of the plan sponsor’s rights under the first-lien note.

The right to receive distributions under the plan on account of certain class 5 claims held by Panthers Football, LLC, the plan sponsor, Tepper Sports Holding, Inc., and Appaloosa Management LP will be assigned or otherwise transferred to the city.

The debtor said the settlement will streamline confirmation and hopefully allow the plan to go effective by the end of the year.

Under the modified plan, class 5 holders that exchange voluntary releases with the debtor, the plan sponsor and their affiliates now may get proceeds from any sale of the project site once the plan sponsor recovers $10 million of its debtor-in-possession claims. Previously, class 5 claimholders would receive nothing until the DIP claims were paid in full from the sale proceeds.

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

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