York County wants $81M stake in Panthers site bankruptcy. Judge could decide today
A federal judge is expected to rule today on how much of a voting claim York County will have in the bankruptcy battle over the failed Carolina Panthers Rock Hill site.
York County’s lawyers claimed in a court hearing Friday in Delaware bankruptcy court it’s owed $81 million in lost tax money a David Tepper company should have used on road improvements as well as lost future tax revenue after the project collapsed. York County wants $81 million worth of voting rights in the bankruptcy confirmation set for November.
But lawyers for GT Real Estate, the company Carolina Panthers billionaire owner Tepper created to build the failed project, say York County has no right to such a large voting share in the bankruptcy.
The hearing was adjourned until today without any decisions made by Delaware Judge Karen Owens, who said in a court order late Friday she expects to rule today York County’s voting claim in the November bankruptcy confirmation.
The more voting power a creditor has in a bankruptcy, the stronger its position to block it and to receive compensation for lost property and contributions. It remains unclear if the taxpayers of York County and Rock Hill will recoup any or all of the money invested in the project.
York County has invested $21 million, and Rock Hill claims it is owed $20 million it spent on the Panthers site.
Unjust enrichment?
Lawyers for York County also claimed in court Friday the company created by Tepper misused its $21 million for unjust enrichment.
York County has sued Tepper companies in an ongoing court battle that is part of the bankruptcy of GT Real Estate. GT was created to develop and build the Panthers South Carolina site but declared bankruptcy in June after construction stopped in March.
York County claims its $21 million investment of tax dollars legally could only be used for road improvements, but were used by GT for other purposes.
“Ultimately, a billionaire misused taxpayer funds to the detriment of the taxpayers,” York County lawyer Derek Baker said in Delaware bankruptcy court Friday.
Lawyers for GT Real Estate balked at York County’s misuse claim Friday in court and have repeatedly denied any wrongdoing. Tepper company GT Real Estate lawyers said in court documents York County and Rock Hill are owed nothing after the project collapsed.
Because there was no obligation to spend the money on roads, there is no legal requirement to pay it back, GT Real Estate lawyer Chris Shore said Friday in court.
“There are no strings attached to this money,” Shore said in court.
This story was originally published October 31, 2022 at 6:00 AM with the headline "York County wants $81M stake in Panthers site bankruptcy. Judge could decide today."
