Panthers terminating Rock Hill project agreements

[TheSpecialJuan]

3 hours ago, SizzleBuzz said:

Response?  To what?  As is the norm, you put a bunch words on paper which in their sum-total said absolutely nothing.

Ok, a basic primer if you will…knowing you’re the audience, I will keep it simple .

Large scale real-estate projects like this are incredibly complex, rife with risk, and they often go off the rails at some point along the journey.

In order to ring-fence said risks, projects of this nature are virtually always incorporated (generally in Delaware) as their own entity.  This isolates the project from any and all other projects, corporate entities, and/or personal assets/interests David Tepper might be party to — this is standard operating procedure.

So why Delaware?

Because Delaware as a state is very much pro-business, the Delaware corporate statute/s are the most progressive/current in the country, and Delaware has a dedicated Court of Chancery which allows parties to a business dispute to get in front a judge and settle the dispute on an expedited basis (relatively speaking anyway).

So why was bankruptcy “part of the plan”?

Obviously bankruptcy wasn’t the goal for this project — but prudent risk assessment and management of said risks dictates the corporate structure, and allows for bankruptcy to be used as a tool should the project get off the rails — that’s why it was always “part of the plan”.

What does the bankruptcy accomplish?

With the project halted for the time being this allows GT Real Estate Holdings, LLC to get all claims (valid and otherwise) before one court/judge to adjudicate on a timely basis so a limited pool of assets can be allocated among valid claims.  This vs. defending a bunch of different lawsuits, in different courts and states (I count 8 different states in the creditor list).

Bottom line?

We shall see but only 3 of the 17 claims are disputed and I suspect the other 14 will be settled in a reasonable manner that is acceptable to both parties.  The 3 disputed claims are all big-boy companies that know and understand the risks (except maybe York Co. ) of getting involved with a project of this magnitude, they’ll all be fine.

Also, once the dust settles don’t be surprised if Tepper reorganizes and cranks this thing back up and ultimately finishes it .

Good stuff, thanks 

[ForJimmy]

4 minutes ago, TheSpecialJuan said:

Good stuff, thanks 

[Anybodyhome]

[ForJimmy]

21 minutes ago, LinvilleGorge said:

Because of wage laws. But those contracted companies took it in the shorts. And some of those "working men" might get hosed if it causes those companies to go belly up or endure some cutbacks to make up for the pantsing they took.

Why? Because poo runs down hill. "Trickle down" didn't work out so well but poo still runs down hill.

Yeah my point exactly.  A lot of smaller contractors/middle men get screwed over in these pissing contests by the rich.  

[TheSpecialJuan]

Yes, it seems odd that a multi-billionaire would be able to shirk or minimize financial responsibilities by taking advantage of the bankruptcy laws. But rich people don’t get or stay that way by being stupid. In creating a company that was and is separate from his personal fortune and putting that company in charge of the aborted construction project for his football team’s stadium, Tepper can shield himself from having to dip into his own piggy bank to pay 100 cents on the dollar to those who provided services to a project that Tepper dumped once public financing didn’t come through.

https://profootballtalk.nbcsports.com/2022/06/02/david-tepper-takes-his-real-estate-development-company-to-bankruptcy/

[LinvilleGorge]

1 minute ago, ForJimmy said:

Yeah my point exactly.  A lot of smaller contractors/middle men get screwed over in these pissing contests by the rich.  

The deck is stacked like a mother fuger for the wealthy. It has been for a long, long time. Hence our current ever increasing wealth divide.

[CRA]

8 minutes ago, Anybodyhome said:

So, can you just leave an abandoned structure of that nature up?   

[Tbe]

1 hour ago, CRA said:

and it’s part of the plan because it limits Tepper’s financial obligations if things go clusterfug sideways.  Which they did. 

Sizzle argued no one gets screwed.  But that’s not true.  Generally once it goes this way people don’t get what they are owed.   They get some of it. 

Correct. Never understood why contractors don’t ask for the agreed funds to be put in escrow. Fronting $20 mill for a llc client with no assets seems stupid.

[djp14]

22 minutes ago, TheSpecialJuan said:

Tepper can shield himself from having to dip into his own piggy bank to pay 100 cents on the dollar to those who provided services to a project that Tepper dumped once public financing didn’t come through.

https://profootballtalk.nbcsports.com/2022/06/02/david-tepper-takes-his-real-estate-development-company-to-bankruptcy/

100 cents on the dollar sounds pretty fair to me.

[Tbe]

21 minutes ago, CRA said:

So, can you just leave an abandoned structure of that nature up?   

No, the city will end up ordering him to take it down. Similar to what fort mill is doing to the old Bakker tower.

Could take years though.

[Jackie Lee]

18 minutes ago, Tbe said:

No, the city will end up ordering him to take it down. Similar to what fort mill is doing to the old Bakker tower.

Could take years though.

And the I-77 interchange? Is that going to be beneficial at all without the facility? I don't know the area at all 

[Tbe]

7 minutes ago, Jackie Lee said:

And the I-77 interchange? Is that going to be beneficial at all without the facility? I don't know the area at all 

It will probably end up being useful eventually.  It will make that area way more attractive to home developers etc.

[CRA]

5 minutes ago, Jackie Lee said:

And the I-77 interchange? Is that going to be beneficial at all without the facility? I don't know the area at all 

Nope. Not currently.  And that’s everyone tax dollars wasted right there.  Thank the SC Gov for that one. 
 

* I mean I guess down the road and future development could make it worthwhile but that is a great unknown.  

[SizzleBuzz]

27 minutes ago, Tbe said:

No, the city will end up ordering him to take it down. Similar to what fort mill is doing to the old Bakker tower.