Justice family finalizes ‘partnership’ with new financier for Greenbrier Resort
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CHARLESTON - The latest drama surrounding U.S. Sen. Jim Justice and the historic Greenbrier Resort in White Sulphur Springs appears to be over, with a deal finalized with a new financier, the federal court case brought by the previous lender dismissed and the governor calling for quick approval by gaming regulators.
In a press release Friday afternoon, the Justice family announced a joint venture involving the Greenbrier with New York-based Kennedy Lewis Investment Management.
"Today marks an exciting new chapter for The Greenbrier and an important moment for everyone who loves this resort," said Jill Justice, daughter of Sen. Justice, on behalf of the Justice Family Group.
"This property is so much more than a resort. It is part of the history of West Virginia, an economic anchor for this community and a place where generations of families have celebrated the most important moments of their lives,” Jill Justice continued. “Our collaboration provides the financial strength, expertise and long-term investment needed to protect everything that makes The Greenbrier special."
"This is a great day for The Greenbrier and all of West Virginia," Sen. Jim Justice, R-W.Va., said in a separate statement Friday evening. "Our new partners bring tremendous experience and fresh ideas, while Jill and our family bring deep West Virginia roots and an understanding of the traditions and people that make this place so special. That is a powerful combination. I truly believe The Greenbrier's best days are still ahead, and Cathy and I could not be more excited about what comes next."
The Justice family first announced the proposed deal with KLIM in May. At the time, a redacted term sheet outlined a $500 million non-binding financing proposal by KLIM to pay off major creditors and cover the costs of capital improvements at the resort. The finances would be secured by the resort and connected properties and land and timber assets owned by the Justice family, and guaranteed by the senator and other family members.
The Justices and KLIM created a new holding company, with KLIM having 51% controlling interest and the Justice family holding a 49% minority interest. KLIM appointed Lloyd Nathan, with a background in hospitality and gaming with 10 years with MGM Resorts International, as chairman of the Greenbrier's Board of Directors.
"The Greenbrier is one of the truly irreplaceable destination resorts in the United States," Nathan said. "Very few properties can match its history, natural beauty, scale, amenities and emotional connection with generations of guests. Our intent is not to change what makes The Greenbrier special but to invest in its future, enhance what makes it exceptional and ensure America’s Resort continues to thrive for generations to come."
"The Greenbrier is a truly unique American institution, with a remarkable history, dedicated employees and a special connection to West Virginia and its guests," said David Chene, a managing partner with KLIM. "By combining Kennedy Lewis’s financial, strategic and operational resources, Lloyd Nathan’s thoughtful and proven oversight as Chairman and the Justice Family’s deep local roots, we have built a powerful platform to invest in the property’s long-term future, and reinforce its standing among the premier destination resorts in the world."
As a result of the finalized deal, White Sulphur Springs Holdings - a company set up by Texas-based TRT Holdings that purchased the Greenbrier’s loan debt in March - agreed to dismiss the lawsuit it filed against the Justice family in April in the U.S. District Court for the Southern District of West Virginia. The parties agreed to dismiss the case with prejudice, meaning it is closed and can’t be refiled.
According to court documents, the Justice family owes more than $387 million to White Sulphur Springs Holdings, though a final payoff amount between the two parties was not revealed. White Sulphur Springs Holdings filed its federal lawsuit against the Justice family after the loan went into default in April. A counter suit filed against TRT Holdings - owners of Omni Hotels and Resorts - and previous loan holder Carter Bank by the Justice family in Greenbrier County Circuit Court was also dismissed Friday.
According to Friday’s press release, the Greenbrier’s casino and daily operations will continue without interruption, while the West Virginia Lottery Commission conducts a formal review of the ownership change. Attorneys for the Justice family had informed U.S. District Court judge Frank W. Volk Thursday that the Greenbrier Casino Club would need to close and its 90 employees be laid off pending approval of a casino license to the new Justice/KLIM holding company by the Lottery Commission.
According to reporting by WV MetroNews, acting Lottery Commission Director David Bradley told attorneys for the Justice family that the casino could continue to operate as long as the new holding company has no authority over casino operations until the Lottery Commission can meet later this month to vote on a license transfer to the new holding company.
In a statement Friday afternoon, Gov. Patrick Morrisey praised the new partnership with KLIM and urged the Lottery Commission to work quickly to help ease the transfer of the Greenbrier Casino Club to the new entity.
"With Kennedy Lewis now officially controlling the resort, I welcome them to West Virginia," Morrisey said. "I also want everyone to know - especially those in Greenbrier County - that I will do everything in my power to protect this historic West Virginia jewel and its employees. I have asked the Lottery Commission to take all necessary steps to prevent the loss of Greenbrier employees during this transition of ownership. I'm hopeful that Kennedy Lewis and the entire Greenbrier team will help restore the beauty of the resort to its former glory."
Steven Allen Adams can be reached at sadams@newsandsentinel.com.