The clock is ticking as a federal judge once again extends deadlines at the request of the family of U.S. Sen. Jim Justice in a case that could determine whether the family maintains control of the historic Greenbrier Resort.
U.S. District Judge Frank W. Volk issued an order Monday granting a request by the Justice family to again postpone briefing deadlines and scheduled hearings in a case filed in April by White Sulphur Springs Holdings (WSSH), a company set up by Texas-based TRT Holdings that now holds the Greenbrier’s loan debt previously held by Virginia-based Carter Bank and Trust.
Volk set a pre-trial conference date for 10 a.m. Thursday, Sept. 3, and an evidentiary hearing for 10 a.m. Wednesday, Sept. 16. The judge also set dates for attorneys for the Justice family to file status reports, including a report due Friday.
The Justice family continues to work on a financing deal with New York-based Kennedy Lewis Investment Management (KLIM) for up to $500 million to pay off major creditors and cover the costs of capital improvements for the resort.
The loan, characterized by some as more of a partnership, would be secured by The Greenbrier Resort and connected properties, land and timber assets owned by the Justice family, and guaranteed by Sen. Justice and other family members. The Justices would be required to create a new holding company and provide KLIM first-lien collateral on all significant resort properties.
Volk had previously set a deadline of July 16 in a May 30 order for the closing to be completed between the Justice family and KLIM, warning the family that any delays beyond that could test the patience of the court. In his updated order Monday, Volk stressed that the Justice family was running out of time.
“… These proceedings have now been suspended for over two months, and Defendants’ anticipated timeline has shifted considerably since the original request,” Volk wrote. “Given the potential for further prejudice to WSSH as a result of any further delay, the Court will set herein a schedule for further proceedings in the event the transaction does not close as anticipated.”
Attorneys for the Justice family had previously said they expected to close its deal with KLIM last week, but point to the complexity of the financing deal, which includes multiple Justice-owned entities connected to The Greenbrier.
“That transaction is not speculative or uncertain – it is nearly done,” wrote Justice’s attorneys Steve Ruby and H. Rodgin Cohen in a July 21 filing. “A further continuance of the briefing deadlines and scheduled hearings will enable Defendants to close the financing transaction, pay WSSH the amount it claims it is owed – netting WSSH a nearly $100 million windfall – and moot this case.”
The Justice family owes more than $387 million to WSSH after TRT Holdings purchased the Greenbrier’s remaining loan debt from Carter Bank in March. According to court documents, discussions between WSSH and the Justice family on a partnership for the Greenbrier broke down, with WSSH filing a lawsuit against the Justice family in the U.S. District Court for the Southern District of West Virginia when the loan went into default in April.
Attorneys for WSSH are asking Volk to appoint a receiver for the Greenbrier and miscellaneous properties and issue a permanent injunction against the Justice family to prevent further interference in The Greenbrier’s operations. In a filing last week, attorneys for WSSH reluctantly agreed to additional time for the Justice family to finalize a deal with KLIM.
“Defendants’ timeline for closing this transaction continues to grow longer with still no clear end date in sight,” wrote WSSH attorney Seth P. Hayes. “(WSSH) is now told this transaction will close on or before Aug. 7, 2026. Recent developments give WSSH cautious optimism that Defendants’ plan will bear fruit by their newest Aug. 7 deadline. But Defendants’ opacity throughout this process – and the Justices’ long history of litigation to avoid paying their debts – tint WSSH’s view with judicious skepticism.”
One of the outstanding issues, which will not be decided by the Justice family’s self-imposed Aug. 7 deadline, is approval by the West Virginia Lottery Commission of a transfer of the license for the Greenbrier Casino Club to the new holding company being set up by the Justices and KLIM. No such item was on the Lottery Commission’s Wednesday morning meeting.
The Lottery Commission approved the renewal for the Greenbrier Casino Club’s license in a June 30 emergency meeting, submitting the required audit report after they missed an internal March 20 deadline to submit the materials. The commission further ordered The Greenbrier to submit quarterly reviews of its finances to Lottery officials over the next 12 months. Lottery officials have since raised concerns about the Greenbrier’s debt load and state/federal tax liens.
