‘Sandbagging, gamesmanship?’ Tepper companies, York County, Rock Hill argue over records
Lawyers representing companies owned by Carolina Panthers’ owner David Tepper continued to argue in court Thursday with York County and Rock Hill over documents related to lawsuits and the ongoing bankruptcy. However, the sides are no closer to resolving how much money -- if any -- will be returned after the team’s failed headquarters project.
The words “sandbag” and “gamesmanship” were used in court.
It’s still unclear who is at fault for the project’s failure.
It’s also unclear how much money South Carolina taxpayers will get back from the failed project, which was billed as a massive economic boon for South Carolina. The project was abruptly halted and left unfinished structures in Rock Hill.
Meanwhile, the Carolina Panthers have been in national news all week after Tepper fired head coach Matt Rhule on Monday. The team is 1-4.
Thursday was a remote hearing from federal bankruptcy court in Delaware. Judge Karen Owens, presiding over the bankruptcy, said any confirmation in the dispute over more than $100 million will be “hotly contested.”
Owens said in court the priority should be for the bankruptcy plan to move forward, but the sides continue to argue over getting documents.
GT Real Estate was the company created by Tepper to build the then-planned Panthers headquarters and practice facility. Construction had been underway on the site off Mount Gallant Road in Rock Hill, S.C. until March. GT declared bankruptcy in June.
York County claims in court records that it is owed at least $80 million, including $21 million in road tax money the county says was misused by the Tepper companies. Rock Hill claims it is owed at least $20 million it invested, according to court records.
A confirmation hearing is set for November for a plan that would pay other contractors $60 million. But York County and Rock Hill have balked at the plan because GT Real Estate claims neither the county nor city is owed any money.
Afterward the plan was proposed, York County and Rock Hill sued GT Real Estate and three other Tepper companies -- DT Sports Holding, Tepper Sports Holding, and Appaloosa Management, court records show. In the lawsuit, York County and Rock Hill filed allege conspiracy and fraud.
The lawsuit was recently moved from South Carolina federal court to Delaware courts where the bankruptcy case is being handled.
In the bankruptcy case, after York County and Rock Hill sued, GT stated it owed York County and Rock Hill nothing because of the actions they had taken in court. GT had previously offered to pay York County $21 million. Rock Hill would have been paid after the property was sold.
GT claimed the city and county made “aggressive responses, unreasonable expectations regarding claim amounts,” in the bankruptcy. GT called Rock Hill’s claims of fraud and dishonesty, “preposterous,” in court documents.
GT and York County both claim in lawsuits that Rock Hill did not issue over $135 million in bonds for the project. The city denies it was required to issue those bonds.
Maris Kandestin, a lawyer for Rock Hill, and Derek Baker, a lawyer for York County, said in Thursday’s hearing that Tepper companies did not met a deadline earlier this week for turning over documents.
Rock Hill subpoenaed not just the companies, but Tepper himself, court documents show.
In previous court filings, Rock Hill claimed Tepper companies tried to severely scale back the project. The city claimed GT Real Estate failed to secure anchor hotel and hospital tenants for the project, which would have produced substantial economic development and tax income.
Owens ordered the sides to work to get each other the documents but set no timetable.
Lawyer disputes
There are several sets of lawyers involved.
According to statements in Thursday’s hearing, some lawyers represent Tepper, DT Sports, Tepper Sports Holding and Appaloosa Management, while others represent only DT Sports.
DT Sports is the lender that would provide millions of dollars to pay for the bankruptcy, according to statements from lawyers and the judge in Thursday’s hearing.
During the hearing, Owens cited concerns she had over when some lawyers were introduced into court records, because all parties are not required to receive all materials. The Tepper lawyers all said there was no attempt to hide anything and there was no gamesmanship.
But Kurt Gwynne, a lawyer for York County, said in court there was “an attempt to sandbag us.”
Gwynne said, “As for gamesmanship, in this case there has been a ton of it.”
What happens now?
A confirmation hearing for creditors claiming to be owed money in the bankruptcy is set for November.
Rock Hill and York County have filed court documents stating they should receive millions of dollars, despite GT’s contention that the county and city have no guarantee of any money in the bankruptcy.
This story was originally published October 14, 2022 at 8:26 AM with the headline "‘Sandbagging, gamesmanship?’ Tepper companies, York County, Rock Hill argue over records."
