The limited liability company that just scooped up almost $300 million in first-lien debt on The Greenbrier Resort and related properties has filed a federal motion to put the historic hotel owned by Senator Jim Justice and his family into receivership.
“The track record of these Defendants more than justifies this request,” wrote lawyers for the company, White Sulphur Springs Holdings, a corporate cousin to the Omni resort and golf chain.
Beyond seeking a receiver, the motion requests a permanent injunction to prevent the Justice family from further interfering with the property or its financial records.
“Given the interrelatedness of the various businesses owned and operated by the Justice Party Defendants, evidence of financial malfeasance and potential fraud at any company owned and operated by the Justice Party Defendants and their affiliates is of paramount concern to WSSH,” the lawyers wrote in the court filing.
“This is especially true as WSSH has reason to believe that the Justice Party Defendants have been and continue to divert significant sums of money from Greenbrier Resort Defendants to support other unrelated business interests to the detriment of WSSH’s collateral.”
READ: Greenbrier Receivership Complaint
Receivership is a court-ordered remedy where a neutral third party is appointed to manage, protect or liquidate assets during litigation or insolvency.
The petition asks the court to appoint a receiver to take full operational control of The Greenbrier Resort following the termination of a forbearance agreement.
The motion filed in U.S. District Court for the Southern District of West Virginia outlines the many years of debts for Senator Justice, his family and the hotel property.
“Defendants have been diverting substantial amounts of revenue generated from The Greenbrier Resort to their other, unrelated businesses,” wrote attorneys for White Sulphur Springs Holdings.
The complaint characterizes the business practices as “waste, fraud, and abuse” resulting in unpaid taxes, neglected employee benefits and a dangerous decline in the resort’s value:
“As a result, these Defendants owe significant unpaid taxes for The Greenbrier Resort; they have not made all required payments to the employees of The Greenbrier Resort, including employees’ health insurance premiums and 40l(k) employer matching contributions; and The Greenbrier Resort itself is not being properly operated and maintained.”
Despite the clear and publicly reported financial strain, this would be a stunning turn for the historic, beloved luxury resort renowned as “America’s Resort” since 1778.
Justice and his family bought the historic Greenbrier Resort in White Sulphur Springs out of bankruptcy in 2009.
Carter Bank & Trust of Martinsville, Va., was the major lender, and financial conflict between the bank and the Justice family over and over during the past decade. Carter regularly reported that the loans were considered “nonaccrual status,” drawing no interest payments and that the debt had become an anvil.
Earlier this month, Carter Bank sold the loans to “an unaffiliated third party,” according to a filing with the U.S. Securities and Exchange Commission. The loan principal was $209.48 million, and Carter received $289.48 million in cash in the transaction.
The company that bought the debt was newly formed White Sulphur Springs Holdings under the authority of TRT Holdings, which owned and operated by Dallas billionaire Robert Rowling and his son Blake.
TRT’s best known asset is the luxury hotel group Omni, which operates more than 50 unique hotels and resorts across North America, known for authentic local experiences, personalized service and a distinct loyalty program.
“WSSH has the immediate right to, among other things, collect the entire amount of indebtedness owed by Defendants, as well as exercise all rights available to it under the Greenbrier Resort Collateral Documents, at law, and in equity,” wrote lawyers for White Sulphur Springs Holdings.
“That includes the right of WSSH to seek appointment of a receiver.”
Within the past week, Jill Justice, the senator’s daughter who is president of the Greenbrier Hotel corporation, in a statement acknowledged closing the books on the Carter Bank relationship while starting talks with TRT Holdings.
“We can confirm that an affiliate of TRT Holdings has acquired The Greenbrier’s loans from Carter Bank & Trust. As is well known, our relationship with Carter was a challenging one for many years,” Jill Justice said.
“We have already been in communication with the new lender and look forward to more discussions with them soon.”
The hotel and associated properties have shown consistent signs of financial trouble.
In late 2024, The Greenbrier was listed for auction on the courthouse steps because of default on the terms of a longstanding loan through the financial giant JPMorgan Chase that was shifted to a credit collection company. Financing to satisfy the debt came through an agreement with Fortress Investment Group, an enormous equity firm.
Late last year, the West Virginia Tax Division has filed liens on The Greenbrier Hotel and Greenbrier Sporting Club over sales taxes collected but not remitted. Since then, some of the liens have been withdrawn — but new ones added, like a March 19 filing amounting to almost a half-million dollars, $459,606.48.
“A receiver will be in full control of all relevant collateral and will be able to ensure that revenue generated by the Greenbrier Resort Collateral is appropriately allocated to protect the collateral and prevent ongoing fraud, abuse, and waste,” wrote the lawyers for White Sulphur Springs Holdings.