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New Greenbrier lending agreement questioned by current lender seeking court-appointed receivership

Then-Gov. Jim Justice, surrounded by First Lady Cathy Justice, their adult children and their spouses and grandchildren, thank supporters at the Greenbrier after his election to the U.S. Senate in November 2024. (File photo by Steven Allen Adams)

CHARLESTON – The family of U.S. Sen. Jim Justice announced last week that it secured a new lender for the Greenbrier Resort, but until it sees the money in hand, the current loan holder wants to move forward with its federal lawsuit to place the historic hotel in receivership.

Attorneys for White Sulphur Springs Holdings LLC, the company set up by Texas-based TRT Holdings, filed a response Saturday in opposition to a motion filed Friday in the U.S. District Court for the Southern District of West Virginia by attorneys for the Justice family seeking a continuance to move back briefing deadlines and scheduled hearings in a case filed by White Sulphur Springs Holdings in April.

Last Friday, the Justice family announced it secured new financing to satisfy the remainder of the loans the White Sulphur Springs Holdings purchased at the end of March from Virginia-based Carter Bank and Trust, which also included additional funding for capital improvements to the historic resort that Justice purchased from CSX in 2009.

TRT Holdings and its president, Blake Rowling, own Omni Hotels and Resorts with more than 50 hotels and luxury properties, including the nearby Omni Homestead Resort in Hot Springs, Va. White Sulphur Springs Holdings purchased the remaining loan debt on the Greenbrier owned by Carter Bank and Trust for $289.5 million.

“We are very pleased to have reached a financing agreement that will end the baseless litigation brought by an affiliate of Omni,” Steve Ruby, one of several attorneys representing the Justice family in the federal litigation, said.

“This transaction will eliminate the distractions that have affected The Greenbrier since earlier this spring and remove any doubt about its financial stability,” Ruby continued. “Most importantly, it allows ownership and management to remain fully focused on continuing the proud tradition, growth, and world-class guest experience that have defined The Greenbrier for more than two centuries.”

The Justice family provided no specifics on who the new lender was, what the loan terms were or how much was being borrowed. In the continuance motion, attorneys for the Justice family offered to allow U.S. District Judge Frank W. Volk to inspect the loan terms in private. According to the release, the transaction should be completed by the end of June.

“This financing represents a major vote of confidence in The Greenbrier, its future, and its enduring place as one of the most iconic resorts in America,” said Dr. Jill Justice, Justice’s daughter and president of The Greenbrier. “It secures the resources necessary not only to satisfy the obligations at issue in this litigation, but also to make substantial long-term investments that will strengthen and preserve The Greenbrier for generations to come.”

Attorneys for White Sulphur Springs Holdings said the first it learned first of a potential new lender for the Greenbrier was through the Justice’s continuance motion and through reporting last Friday.

“Instead of notifying WSSH directly, Defendants trumpeted their alleged financing to the press,” wrote White Sulphur Springs Holdings attorney Seth P. Hayes. “This is not productive. It is an attempt to stay these proceedings and delay paying their obligations.”

In previous statements, White Sulphur Springs Holdings officials have said the Justice family has wire instructions and can pay the remaining debt at any time it wishes. In Saturday’s filing, Hayes said that until the loan is paid in full, there is no reason to take the Justice family’s claims seriously.

“Defendants claim WSSH is ‘ignor[ing] Defendants’ offer to repay the Loans in full.’ No such offer has been made,” Hayes wrote. “However, implicit in defendants’ motion is that they are still unable to satisfy their obligations. They only ‘expect’ to finalize financing in the next 60 days to pay their indebtedness in full.

The Justice family most recently filed a motion to stay the federal case while a case filed by the Justice family against TRT Holdings and Carter Bank seeking a preliminary injunction against the two entities is pending. The Justice family accuses White Sulphur Springs Holdings/TRT Holdings of using confidential information and violating standstill agreements to purchase the Greenbrier’s loans at a discount, then declaring a sham default to seize the property.

“Defendants’ position is that they owe nothing to WSSH because WSSH does not validly own the judgments,” Hayes wrote. “Having already moved to stay this action in deference to their state-court suit, defendants now seek a continuance of all deadlines because they expect to obtain financing within the next 60 days to pay off these same judgments in full. Defendants’ motion is a tacit admission that WSSH rightfully owns the judgments and collateral documents. Thus, no continuance should be considered while defendants refuse to honor their obligations.”

White Sulphur Springs Holdings is asking a federal judge to appoint a receiver for The Greenbrier Resort and miscellaneous properties and a permanent injunction against the Justice family to prevent further interference in The Greenbrier’s operations.

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