The corporate owner of Omni Hotels & Resorts says recent claims by Senator Jim Justice’s family business group of a conspiracy to snatch The Greenbrier Hotel are hogwash.
“The allegations are false and attempt to deflect from a straightforward issue: the failure to repay outstanding debt,” TRT Holdings said in a statement released to MetroNews.
The two sides are locked in a battle over control of The Greenbrier on two fronts: a federal lawsuit filed by a TRT Holdings subsidiary and a lawsuit filed in Greenbrier County on behalf of the Justice family.
TRT Holdings is owned by Texas billionaire Robert Rowling, whose son Blake serves as the company’s president. Omni operates more than 50 luxury properties.
TRT’s newly formed White Sulphur Springs Holdings bought nearly $300 million in first-lien debt on The Greenbrier and related properties from longtime lender Carter Bank & Trust, which has been in conflict with the Justices for years.
The TRT subsidiary then moved for receivership of the historic hotel, essentially asking the federal court to appoint a third-party caretaker. The thrust of that filing is a broad set of claims that the Justices have delayed upkeep on the property, diverted profits to other business offshoots and left the hotel’s value at risk.
The Justice family, which bought The Greenbrier in 2009, has filed counterclaims arguing that TRT’s purchase of the debt and supporting legal documents should be disallowed, alleging that the buyer used insider information to gain a premature and unfair advantage.
The Justices leveled additional allegations this week in a revised complaint in Greenbrier County court and an accompanying press conference led by Charleston attorney Steve Ruby, saying TRT participated in a deceptive scheme to seize The Greenbrier resort through an unlawful acquisition of the property’s debt.
The Justices allege TRT Holdings used confidential information and violated standstill agreements to sabotage the hotel’s refinancing efforts and trigger a fraudulent default.
TRT’s new statement contends, “Any claim that White Sulphur Springs Holdings, LLC (WSSH) was not legally allowed to purchase the debt is without merit.
“The facts are clear and well documented. The acquisition was conducted in full compliance with all applicable laws and agreements, and WSSH and its affiliates have met all obligations under the debt agreements.”
Conversely, TRT maintains, “the Justice entities have repeatedly failed to comply with all terms and conditions of the prevailing agreements, as evidenced by the existence of 14 Amended Forbearance agreements.
“That reflects fourteen instances over the last few years in which the debt was not paid when due. The debt is due and payable, and additional extensions are not warranted.”
Justice family court filings have alluded to recent meetings with TRT representatives to discuss a potential working relationship. One of the ideas hatched, according to a Justice court filing was an arrangement for TRT to acquire a 50% ownership interest in The Greenbrier in exchange for forgiving $200 million in debt.
“Confronted with the threat that Defendant TRT posed to the value of The Greenbrier and the welfare of its employees, and a classic ‘your money or your life’ demand, Plaintiff Jim Justice responded that he was willing to consider that proposal,” attorneys for the Justice family wrote in the most recent amended complaint.
A day after that meeting, representatives of TRT wrote in an email to say they had considered working together but that they would have to decline, with a major roadblock because “some creditors are not paid in full.”
Representatives for the Justices replied by stating intent to exercise a payoff right under the forbearance agreement and asked for wiring instructions for the payoff.
The Justices contend that before they could wire the payoff amount, TRT filed suit in federal court.
TRT describes the situation differently, saying the Justices have not put up the money.
“Within the last 30 days WSSH has sent wire instructions to settle the debt, and the Justice entities have failed to remit payment. It is time for Senator Justice to pay his debt or place The Greenbrier into the hands of someone with a long track record of caring for iconic resorts and the communities they support,” TRT wrote in its statement today.
The Justice lawsuit claims the conflict has all been designed to eliminate competition for the Omni Homestead, a rival luxury resort owned by TRT Holdings less than an hour’s drive from The Greenbrier.
TRT says that’s not true.
“Assertions regarding potential harm or loss of jobs to employees at The Greenbrier are completely false,” TRT stated.
“Should WSSH or Omni Hotels Corporation become involved in the operation of the hotel, they would be fully committed to the employees, vendor community and all stakeholders in The Greenbrier Resort, including fair treatment, competitive compensation and benefits, and honoring all obligations including contributions to employee benefit funds.”