Judge wants update on Greenbrier refinancing deal by Friday

BECKLEY – August 7 has came and gone, and a federal judge still awaits answers from U.S. Senator Jim Justice, his family and their businesses about a proposed $500 million refinancing deal for The Greenbrier resort.

U.S. District Judge Frank W. Volk issued an order August 10 requesting a report by August 14 on the transaction the Justice parties said would close by August 7.

The case involves a receivership and debt dispute brought by White Sulphur Springs Holdings, a Texas-based affiliate of Omni Hotels & Resorts. WSSH wants to enforce debt obligations against Justice, his wife Cathy, their son Jay and several entities connected to The Greenbrier resort, including Greenbrier Hotel Corp., Greenbrier Medical Institute and Oakhurst Club.

In a July 31 status report, defense counsel said all portions of the transaction under the defendants’ control would be completed by August 7 and that the deal was expected to close that day. The defendants also said they would promptly notify the court if it did not close.

“As of today, there has been no notification to the court,” Volk wrote in Monday’s two-page order. He directed the defendants to file a status report by Friday.

The court had suspended deadlines and hearings while the Justice defendants pursued a refinancing transaction. In a July 27 order, Volk allowed a short extension through August 7, while cautioning that the litigation had already been paused for more than two months and that the defendants’ projected closing date had shifted considerably.

The proposed refinancing involves Kennedy Lewis Investment Management and had been described in prior filings as providing up to $500 million in financing. A redacted term sheet indicated the loan would be secured by a first lien on the borrower and Greenbrier assets, including development projects, land and timber farms.

WSSH has expressed doubt that the refinancing would close and fully pay its claims. In a July filing, it cited tax liens, regulatory scrutiny of The Greenbrier’s casino license and what it characterized as worsening financial conditions among the Justice-related businesses. Those assertions remain allegations and positions taken by the lender in the ongoing case.

Volk has set a September 3 prehearing conference and a September 16 evidentiary hearing if the transaction did not resolve the case.  

U.S. District Court for the Southern District of West Virginia case number 5:26-cv-00257