GT Real Estate Holdings reaches settlement with York County

By Sarah Lizee

Olympia, Wash., Dec. 9 – GT Real Estate Holdings, LLC has reached a settlement agreement with York County, S.C., according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.

As background, GT Real Estate, owned by Carolina Panthers owner David Tepper, 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.

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.

The debtor said the settlement with the county provides for the resolution of significant litigation between the parties, and secures the county’s support for its Chapter 11 plan.

Under the settlement, Tepper’s company DT Sports Holding, LLC, the plan sponsor, will pay $21.17 million to the county.

On the effective date of the plan, the county’s claims against the debtor will be deemed extinguished and expunged on account of the settlement payment and without any distribution from the debtor’s estate.

The county will vote to accept the plan, and the debtor, non-debtor affiliates and the county will exchange mutual releases.

The parties will seek approval of the settlement on Dec. 14, when the plan confirmation hearing takes place.

City settlement

As reported, the company recently received court approval of another settlement between the debtor, DT Sports and the city of Rock Hill, S.C.

This settlement will resolve all pending litigation between the debtor and the city and secures the city’s support for the plan.

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

The parties will exchange mutual releases.

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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