Jim Justice outside The Greenbrier
BECKLEY – A federal judge is demanding Gov. Jim Justice’s family and their Greenbrier‑related companies explain by Tuesday morning why he should not move ahead quickly with ruling on Omni‑affiliated lenders’ bid to wrest control of the historic resort through a federal receivership.
In a July 19 order to show cause, Chief U.S. District Judge Frank W. Volk directed Justice, his wife Cathy, his son Jay and their companies to file a written explanation by 8:30 a.m. July 21 laying out why the court should not set proceedings for a prompt decision on the merits of White Sulphur Springs Holdings’s push for a receiver and related emergency relief.
“Accordingly, the court ORDERS defendants to show cause in writing by 8:30 a.m. on Tuesday, July 21, 2026, explaining why the court should not forthwith enter an order setting the further proceedings necessary for a prompt adjudication of the merits,” Volk wrote.
The case pits WSSH – a Texas‑based Omni Hotels & Resorts affiliate that holds roughly $300 million in first‑lien Greenbrier debt – against the Justice family and multiple Greenbrier‑related corporations over control of the resort and repayment of hundreds of millions of dollars.
Volk’s order comes against the backdrop of months of wrangling over a planned refinancing of about $500 million Justice’s lawyers say would pay WSSH in full and recapitalize the resort. WSSH, meanwhile, has asked the court to appoint a receiver and warned about what it portrays as deteriorating finances, unpaid taxes and underinsurance.
In a July 15 court filing, the defendants told the court their long‑promised financing transaction with Kennedy Lewis Investment Management “is proceeding as expected,” and they “believe that the transaction will be completed within or shortly after the time indicated in the May 30 Order.”
If he is not satisfied with the defendants’ explanation in its requested filing, Volk signaled he is prepared to move quickly toward adjudicating WSSH’s emergency motion to appoint a receiver and its separate motion for a preliminary injunction, both filed May 1.
On May 30, Volk granted the Justice entities a “brief” pause in briefing and hearings after they told him a large refinancing deal was in the works. At that time, he found they had acted diligently and that the balance of prejudice favored a short delay, but he warned that “[i]f defendants seek further extensions … the balance of prejudice will likely shift rather abruptly,” and he wrote that his “expectation” was that the refinancing “closing will occur on or before July 16, 2026.”
Instead, on July 10 the defendants filed a status report telling the court that “a brief additional period may be required to close” but that “the transaction should be able to be closed by the week of July 20, 2026.”
Five days later, WSSH responded, flagging what it called “a number of material and relevant financial developments” since May 30, questioning whether the refinancing would ever materialize, and emphasizing that “routine processes associated with a $500 million debt refinancing have [not] occurred.” WSSH did not ask to extend the previously discussed July 16 expectation, leaving the court’s patience clearly strained.
In the new order, Volk lists five pending motions, led by WSSH’s amended emergency motion to appoint a receiver over The Greenbrier and its related entities and its emergency motion for a preliminary injunction, both filed May 1.
Also pending are the defendants’ amended motion to stay filed May 8, a May 19 motion to intervene from the West Virginia State Tax Division and a July 17 motion to intervene by Fivemile Energy and New London Tobacco Market, which describe themselves as judgment creditors with “substantial and significant interests” in the litigation.
Volk’s show cause order suggests he is weighing whether to stop waiting for the refinancing to close and instead move toward ruling on whether a receiver should take control of the resort and its cash flow.
In earlier filings, WSSH has painted a picture of mounting defaults, alleged misuse of revenue, unpaid tax bills and employee‑related obligations. It also asserted Justice’s financial troubles and alleged mismanagement threaten both the value of the collateral and the local economy.
The order comes just days after Justice’s lawyers filed a reply insisting they have secured financing to meet WSSH’s full payoff demand, even as they argue WSSH is overstating what it is owed and using the receivership bid as leverage to take ownership of The Greenbrier.
In that filing, attorney Steve Ruby told the court the Justice entities had lined up funds to satisfy an approximately $387 million payoff quote WSSH’s counsel sent July 8, despite disputing “various aspects of the basis for that demand.”
Ruby accused WSSH of misleading the court by suggesting it was conditioning the refinancing on settlement talks, saying the record instead shows they had financing in hand to meet the payoff but were willing to accept a lower figure as part of a “global resolution” of all claims.
Ruby attached emails in which WSSH laid out its terms for any global deal – including full payment of all judgment obligations, satisfaction of forbearance‑agreement obligations, dismissal of a parallel Greenbrier County suit and broad releases – and a July 14 response in which Justice’s side proposed paying $320 million at closing plus claimed collection costs, dismissing the state case and granting releases.
The Justice filing also pushed back on WSSH’s assertions that the resort was underinsured and that insurance coverage had lapsed, arguing that “legitimate insurance coverage has not decreased” and that the Omni affiliate itself had unilaterally taken out coverage naming itself as beneficiary, which was later canceled after the carrier learned WSSH’s claim to the loans was contested.
Justice’s lawyers told Volk WSSH “has no genuine interest in being repaid; its goal, rather, is to take The Greenbrier,” characterizing its latest status filing as a “last‑ditch effort to derail” the refinancing.
Volk’s order does more than squeeze the Justice side on timing. It also opens a tight window for other players in Justice’s larger financial picture to stake out positions. The judge ordered that “any properly joined party” that wishes to respond to the motion to intervene filed by Fivemile Energy and New London Tobacco Market must do so by 5 p.m. on July 22.
In their July 17 motion, those two companies describe themselves as judgment creditors of certain Justice‑controlled defendants, arguing they have “substantial and significant interests” in how the Greenbrier litigation is resolved.
Their bid to intervene follows a May 19 motion from the West Virginia State Tax Division, which has signaled its own interest in ensuring that any refinancing or receivership addresses outstanding state tax liabilities tied to Justice‑related entities. Justice’s filings have told the court that tax obligations will be satisfied when the refinancing closes.
