Justice family seeks delay to Aug. 7 for new Greenbrier lender deal

CHARLESTON - The family of U.S. Sen. Jim Justice met a deadline to explain where they are in finalizing a deal with a new lender for the historic Greenbrier Resort, seeking an additional 18 days before a federal lawsuit resumes.

In a response filed Tuesday to an order to show cause issued Sunday night by U.S. District Judge Frank W. Volk, attorneys for the family, the owners and manager of The Greenbrier since 2009, asked to have until Aug. 7 to resolve the financial obligations and settle the legal action. The Justice family expects to have all deal documents finalized between the family and New York-based Kennedy Lewis Investment Management this week, with due diligence complete and primary transaction documents and title documents nearly complete, as well as property inspections.

In a May 30 order, Volk set a deadline of July 16 for the closing to be completed between the Justice family and KLIM, warning the family that any delays beyond that could test the patience of the court. In its third status update to the court on July 10, attorneys for the Justices said the closing likely wouldn't be able to be completed until after July 20.

"Defendants recognize the Court's 'expectation that closing will occur on or before July 16, 2026,' and regret that the expectation has not been met," attorneys wrote in the Tuesday morning filing. "At no point has the transaction abated. To the contrary, the parties are nearing the finish line. Although Defendants' initial estimate that the transaction would close by early July ... proved overly optimistic, the closing itself has never been in jeopardy."

"KLIM agrees that the transaction parties are working diligently to consummate the anticipated transaction as quickly as reasonably possible, subject to the completion of definitive transaction documents and certain conditions precedent to closing," wrote Stephanie Lindemuth, an attorney representing KLIM, in a letter to Volk as part of Tuesday's filings.

The Justice family announced the proposed deal with KLIM in May. It would satisfy the nearly $300 million in loan debt owed to White Sulphur Springs Holdings, a company set up by Texas-based TRT Holdings, which purchased the Greenbrier’s remaining loan debt from Virginia-based Carter Bank and Loan in March.

The redacted term sheet outlines a $500 million, non-binding financing proposal by KLIM. The loan would be secured by the Greenbrier Resort and connected properties, land and timber assets owned by the Justice family, and guaranteed by Sen. Justice and other family members. The Justices would be required to create a new holding company and provide KLIM first-lien collateral on all significant resort properties.

"Given the complex organizational structure of The Greenbrier and its relevant assets, a multi-step internal pre-closing reorganization was required to be in a position to transfer all of the appropriate assets unencumbered," wrote Justice family attorney Steve Ruby in a separate declaration filed Tuesday.

"Given delays in turnaround time to receive evidence of certain entity conversions, the time of the reorganization was delayed," he continued. "But the parties expect that the reorganization will be completed by July 21, 2026."

WSSH filed a lawsuit against the Justice family in April in U.S. District Court for the Southern District of West Virginia after negotiations fell through and the loan went into default. Attorneys for WSSH are asking Volk to appoint a receiver for the Greenbrier and miscellaneous properties and issue a permanent injunction against the Justice family to prevent further interference in The Greenbrier’s operations.

Attorneys for WSSH said in a filing last week that no one from KLIM has reached out to them about what a total payoff amount for the remaining Greenbrier loan would be and they have no information regarding a possible payoff beyond the redacted term sheet. But the Justices' attorneys provided two exhibits showing correspondence between Ruby and attorneys for WSSH.

According to that correspondence, Ruby proposed a global resolution and a payment of $320 million to satisfy outstanding debts and end ongoing litigation. However, WSSH attorney Clay Hoblit rejected any compromise, demanding a full payoff of approximately $387.7 million as dictated by a forbearance agreement. KLIM attorneys also reached out to WSSH seeking a payoff letter in an email sent Monday.

In a state court filing, the Justice family has accused TRT Holdings and Carter Bank of engaging in a conspiracy to take over The Greenbrier by unlawfully selling and acquiring the hotel's debt. TRT Holdings has denied these claims.

In Tuesday's filing, the Justices' attorneys accused WSSH/TRT Holdings of extorting the Justice family and trying to stop the deal with KLIM in order to obtain The Greenbrier.

"It is undisputed that WSSH originally offered Defendants a deal that would have obviated the need for the current refinancing but then reneged on that deal, instead demanding a massive windfall profit," the Justices' attorneys wrote. "WSSH did so because it believed Defendants would be unable to come up with the money to pay its extortionate demand. Now that Defendants, working with KLIM, have overcome that challenge, it would be deeply inequitable to pull the rug out from under them just as their transaction is nearing completion."

The Justice family also pointed to circumstances beyond its control that are hindering the final closing, including a review by the West Virginia Lottery, which must sign off on the transaction that includes the transfer of the Greenbrier Casino Club's license to the newly formed holding company. The next meeting of the West Virginia Lottery Commission is July 29.

During an emergency meeting of the Lottery Commission on June 30, members approved the renewal for the Greenbrier Casino Club after resort officials submitted a required audit report after they missed an internal March 20 deadline to submit the materials. However, the Greenbrier will need to submit quarterly reviews of its finances to Lottery officials over the next 12 months.

WV MetroNews reported last week that West Virginia Lottery Acting Director David Bradley sent a letter to Justice's attorneys raising concerns about the millions of dollars of tax liens placed on The Greenbrier by the state Tax Division and the IRS, as well as the debt load for The Greenbrier. Total liabilities grew from approximately $90 million in 2024 to $260 million in 2025 and a negative working capital of about $240 million.

"A predominate concern is your considerable debt," Bradley wrote. "It would be difficult to conclude that the licensee possesses 'financial integrity' or 'adequate capital' if the proposed transaction (with KLIM) does not address all outstanding debt - both to creditors and to the State of West Virginia ... After all, if the agreement allows you to take on a new loan - and new debt - without eliminating all existing debt, then it will only compound the problem instead of resolving it."

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