BECKLEY – The Greenbrier plans to close its casino and lay off about 60 workers after the West Virginia Lottery Commission indicated it would not act quickly enough on a transaction connected to the Justice family’s proposed refinancing, according to a court filing.
The status report filed August 12 in the federal debt and receivership dispute says the casino shutdown is intended to allow a financing transaction involving Kennedy Lewis Investment Management to close without further delay. The defendants, which include the family of U.S. Senator Jim Justice and their businesses, said the closure also will mean lost revenue for the state.
The filing also says the refinancing deal with close by August 14.
Justice
“The Greenbrier has reluctantly decided that it will shut down its casino in order to close the transaction,” the filing states. The defendants said the Lottery Commission had indicated it would not consider the transaction by the needed date and that the delay carried substantial costs.
The report says the decision will result in the layoff of about 60 casino employees. It also says the defendants “deeply regret” the expected job losses and the resulting loss of state revenue, while maintaining that they had supplied the Lottery with extensive information about the proposed transaction.
“Defendants have diligently provided information to the Lottery for more than two months and have promptly responded to all information requests from the Lottery,” the filing states. “Defendants also have informed the Lottery of the urgent time constraints created by this litigation, that the amount defendants must pay to close their refinancing is increasing by approximately $145,000 per day because of interest charges, and that further delay will cost defendants hundreds of thousands of dollars in additional professional fees.
“Nonetheless, the Lottery has not yet confirmed when it will consider the Greenbrier’s approval request. Faced with no other practical options to close the transaction on a timely basis and avoid even higher costs of delay, the Greenbrier therefore intends to close the casino and conclude the transaction on Friday.”
But the defendants say they need help from the plaintiffs for that to happen.
“Notably, defendants’ ability to close on Friday depends on cooperation from plaintiff, which must provide a payoff letter and associated lien releases as part of the closing process,” the filing states. “Plaintiff has insisted, with no valid reason, on an in-person closing, which is highly unorthodox for a transaction of this nature in 2026 and which plaintiff knows will delay the ability of defendants and KLIM to efficiently and timely record necessary documents in various county courthouses as part of closing.
“And just hours ago, a day after defendants advised plaintiff that defendants intended to close on Friday, plaintiff sent defendants and KLIM an extensive rewrite of its own draft of the Payoff and Release Agreement. The revisions include the rewriting and inclusion for the first time of entire pages of language that plaintiff itself drafted and provided three weeks ago. Defendants now must review and respond to these eleventh-hour changes.”
The Greenbrier and the other defendants say they “remain gravely concerned” this is an attempt “to obstruct closing in an effort to derail the refinancing.” They also say again they might need more time because of the revisions.
“Defendants will work through these most recent impediments and remain on pace for a Friday closing, but defendants may well need to approach the court for emergency relief if more obstacles are interposed,” the filing states. “Defendants will submit a further status report no later than Friday, August 14, 2026.”
The casino decision is the latest development in litigation filed by White Sulphur Springs Holdings, a Texas-based affiliate of Omni Hotels & Resorts, against Justice, his family and businesses tied to The Greenbrier. The lender seeks to enforce debt obligations and has pursued a receivership involving Justice-related companies, including Greenbrier Hotel Corp., Greenbrier Medical Institute and Oakhurst Club.
Justice, his wife Cathy, son Jay and related entities have been pursuing a proposed $500 million refinancing transaction with New York-based KLIM. The deal has been presented to the court as a means of satisfying the debt dispute and avoiding further receivership proceedings.
The parties had previously identified Lottery Commission approval related to the resort’s casino license as one of the final obstacles to closing. Other outstanding matters included title insurance on dozens of parcels and lien releases structured to meet the requirements of the financing transaction.
U.S. District Judge Frank W. Volk repeatedly has paused or extended litigation deadlines while the Justice defendants sought to complete the financing.
In late July, Volk gave the parties until August 7 to close while setting September dates for a prehearing conference and evidentiary hearing if the transaction failed.
After the August 7 target passed without a notice that the deal had closed, Volk ordered the Justice defendants to file another report by August 14 explaining the status of the transaction.
The latest filing indicates the Lottery-related delay has now moved beyond a regulatory approval issue and into an operational decision affecting the casino’s workforce. The report does not identify a reopening date or say how long the casino closure and layoffs would last.
U.S. District Court for the Southern District of West Virginia case number 5:26-cv-00257
