CHARLESTON — A attorney for The Greenbrier has told West Virginia Lottery officials that federal tax liabilities, including a newly reported $8 million IRS lien, will be paid when the resort’s refinancing transaction closes, while urging it to allow the casino to remain open during their review of an ownership restructuring.
In an August 13 letter to acting Lottery Director David Bradley, Charleston attorney Steve Ruby said The Greenbrier must close its refinancing transaction August 14 because of the ongoing litigation and mounting delay costs. Ruby asked whether the Lottery would agree to a temporary arrangement allowing casino operations to continue while the Lottery Commission considers the matter.
Justice
The proposed transaction involves Kennedy Lewis Investment Management and has been described in court filings as a refinancing package of up to $500 million. U.S. Senator Jim Justice, his family and their Greenbrier-related entities have said they would pay off more than $400 million in debt classified as currently due, fund operations and capital improvements, resolve litigation and immediately pay more than $2.6 million in state taxes.
Ruby
“Absent one of those resolutions, however, we remain obliged to close the transaction tomorrow and cease operations at the casino,” Ruby wrote while requesting prompt approval after closing so casino workers could return to work.
The Lottery Commission’s next regular meeting is scheduled for Aug. 26. The commission’s approval is required because the transaction would restructure ownership and control connected to the resort’s limited gaming license.
Ruby’s letter responded to questions Bradley raised in an August 12 letter, including concerns about a federal tax lien filed against Greenbrier Hotel Corp.
The IRS recorded a lien August 10 alleging Greenbrier Hotel Corp. owed $8,009,200.96 in unpaid employment taxes for two periods ending Dec. 31, 2025, and March 31, 2026. The lien is separate from a previously reported $3.33 million federal tax lien connected to 2024 and 2025 employment taxes.
Ruby said the taxes covered by the newest lien were included in financial statements supplied to accounting firm Suttle & Stalnaker in June and would be paid at closing.
“All liabilities of the Greenbrier were reported on the financial statements provided to Suttle & Stalnaker in June 2026,” Ruby wrote. “We are aware of no other Greenbrier debts to the state or federal governments.”
Bradley previously had cited the Greenbrier’s debt, tax liens and financial condition as central issues in assessing whether the casino licensee has the financial integrity and adequate capital required under Lottery law and regulations. The Justice Family Group was placed on formal financial watch after an outside accountant reported negative working capital and a sharp increase in current liabilities.
Ruby also disputed the relevance of a West Virginia Department of Environmental Protection lawsuit against Bluestone Coal Corp., saying that company has no part in The Greenbrier transaction.
Bradley had mentioned the case, Rorrer v. Bluestone Coal Corp., filed in Kanawha Circuit Court. Ruby said issues involving coal businesses outside the transaction “have no bearing on the Lottery’s approval process” and do not affect The Greenbrier or its casino.
The letter included a final version of a schedule to the proposed LLC agreement and an updated organizational chart, according to Ruby. He said the schedule had changed only by deleting a footnote referenced by Bradley and that one second Justice-family manager seat would remain vacant at closing.
Ruby said both Jill Justice and James C. “Jay” Justice III already had been vetted by the Lottery.
The letter followed an August 12 status report in federal court in which Greenbrier-related defendants said they would close the casino to complete the KLIM refinancing without waiting for Lottery approval. That filing anticipated layoffs affecting about 90 casino employees and said additional delay was adding roughly $145,000 per day in interest charges, besides professional fees.
The refinancing is tied to a federal debt and receivership dispute brought by White Sulphur Springs Holdings, an Omni Hotels & Resorts affiliate that holds Greenbrier-related debt. The Justice family and related companies have portrayed the KLIM transaction as a way to repay creditors and avoid a receivership, while WSSH has challenged their financial assurances.
Ruby told Bradley that the refinancing would be a “clear win for the state,” citing the proposed payment of tax obligations, funding for maintenance and capital improvements, and additional gaming, hospitality and finance experience on the resort’s leadership team.
He said The Greenbrier was not asking the Lottery to disregard legal requirements.
“Our only request is to be treated like any other licensee,” Ruby wrote, “including those for whom the Lottery has called meetings for the specific purpose of approving time-sensitive transactions.”
U.S. District Court for the Southern District of West Virginia case number 5:26-cv-00257
