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Justice family settles debts over Greenbrier

Representatives of Gov. Jim Justice and his family announced Tuesday night that all remaining debt for the Greenbrier Resort is now paid and a scheduled auction of the resort has now been canceled. (File photo)

CHARLESTON – Gov. Jim Justice and his family appear to have averted the auction of the Justice-owned Greenbrier Resort after settling the remaining debt with the historic hotel’s new loan holder.

In an emailed statement Tuesday night, representatives of the Justice family said that all remaining obligations to Maryland-based Beltway Capital Management and McCormick 101 LLC are now paid in full and all indebtedness to the loan acquisition companies is settled.

“This significant achievement comes as part of the family’s ongoing commitment to ensure the long-term stability and prosperity of their holdings, including The Greenbrier Resort, America’s Premier Resort,” according to the statement.

The announcement comes after Beltway Capital/McCormick 101 filed a second legal notice last week in the Lewisburg-based West Virginia Daily News of its intent to auction off the Greenbrier hotel building and adjoining parking lots on Oct. 25 due to default. With the settlement paid in full, Justice representatives said the auction is canceled.

Speaking Wednesday during his weekly administration briefing from the State Capitol Building, Justice said he received updates throughout the day Tuesday on the progress of the settlement from Jay and Jill Justice, his adult children who manage his businesses.

“Jay and Jill … were working, because they were finalizing … in regard to the situation at the Greenbrier and putting that all to bed and everything,” Justice said. “We were retiring and getting rid of the Beltway noise that was out there. … This was taking advantage (of us) and something that was not fair at all. It’s cost us an unbelievable amount of money.

“There was no choice in the world,” Justice continued. “You can let 2,000 people suffer because of a bad act that was happening to the Justice family, or you could find a way. Well, that’s what we did. It was not any fun, and it has cost us a lot of money.”

A deal on the Greenbrier was reached between the Justices and Beltway Capital/McCormick 101 on Aug. 22. While few details of the agreement were released, a statement at the time from the Justice family said Beltway Capital/McCormick 101 would receive a specific amount to be paid in full by Oct. 24, which Gov. Justice had already secured funding for.

Speaking last week, Justice said the total settlement amount with Beltway Capital/McCormick 101 was $24 million with specific payment dates leading up to Oct. 24. Justice said he made two payments to Beltway Capital/McCormick 101 since the August settlement was announced, with a $500,000 payment and $1.2 million before Sept. 15.

According to the statement, the completed settlement also addresses issues with the Glade Springs Resort near Beckley. Unlike the Greenbrier, Glade Springs was placed into a blind trust, shielding the governor from direct involvement in its business decisions.

“This proactive approach has not only strengthened the Justice family’s financial position, but also reaffirmed their dedication to the future of The Greenbrier Resort and Glade Springs Resort,” representatives for Justice said. “Having completed this process, the Justices will be in a position to provide extended stability for The Greenbrier’s operations, enabling continued investment in the resort’s facilities and services.

“We are excited to have successfully paid in full our obligations to Beltway Capital and look forward to the future of The Greenbrier and Glade Springs,” said Jill and Jay Justice. “This will allow us to invest further in our operations and enhance the experiences we provide to our guests.”

Beltway Capital/McCormick 101 — which specializes in purchasing distressed loans from banks that are secured with collateral — declared a loan transferred from JPMorgan Chase Bank in default in July after Justice was unable to pay the full amount by the June 28 maturity date, placing the resort in foreclosure. JPMorgan transferred what was left of a $142 million loan that Justice took out in 2014 on the Greenbrier to Beltway Capital/McCormick 101 on July 2.

Representatives of Justice’s companies claimed in July the loan was paid down to $9.4 million, but Beltway Capital/McCormick 101 filed a separate court case July 18 in New York seeking $40.3 million plus interest and late charges accruing since July 15 from Justice, James C. Justice Companies Inc., Justice Holdings LLC, GSR LLC, Wintergreen Partners Inc. and the Greenbrier Hotel Corp.

Justice bought the Greenbrier in 2009 from rail company CSX. Since 2017, Jill Justice runs the Greenbrier Hotel Corp. as president while Justice serves as governor, though Justice is still listed as CEO. Justice’s son Jay operates the family’s coal, agricultural and real estate businesses.

“We appreciate the continued support from our partners, the patience of our valued team members, for whom we know this was a stressful period, and we look forward to welcoming visitors for many years to come,” Jill and Jay Justice said.

Steven Allen Adams can be reached at sadams@newsandsentinel.com

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