Representatives of Senator Jim Justice and his family business organization say a potential $500 million financing deal is progressing.
The Greenbrier family ownership group has been working on a financing deal of about $500 million with Kennedy Lewis Investment Management LLC, which is a New York-based alternative asset management firm focused on opportunistic and private credit. Founded in 2017, it frequently invests in distressed debt and focuses on situations driven by events.
“Both Defendants and KLIM have confirmed their intention to consummate the transaction,” wrote lawyers for the Justices in a newly filed status report.
The potential financial deal is wrapped up in a federal court dispute between the Justices and the owners of Omni Hotels & Resorts.
The Greenbrier is an 11,000-acre luxury resort and historic landmark in White Sulphur Springs known as “America’s Resort.” The hotel features a private casino, championship golf, mineral spas and a secret Cold War-era bunker plus 710 guest rooms, including 33 suites and 96 estate houses.
Jim Justice, former governor and now U.S. senator, bought The Greenbrier in 2009. The Greenbrier Hotel Corp. lists daughter Jill Justice as president and son Jay Justice as vice president.
The Omni affiliate White Sulphur Springs Holdings, which bought millions of dollars in loans earlier this year, filed a federal lawsuit to try to have a receiver named to run The Greenbrier while pushing out the Justices.
The court case is mostly on hold while the Justices see through the financing possibility with Kennedy Lewis. U.S. District Judge Frank Volk, who is overseeing the case, set a series of deadlines for status reports and lawyers for the Justices filed the most recent one on Friday.
“As of the date of this status report, the financing transaction is proceeding as expected,” lawyers for the Justices wrote, going on to note that the parties to the financing deal believe it can be completed within the timeframe previously laid out by the judge.
Lawyers for the Justices say due diligence on the financing is continuing as expected and is substantially complete. Work on the primary transaction documents is ongoing and expected to be completed by the middle of next week, they wrote.
“KLIM has confirmed that funding is available to fully fund the transaction,” the Justice lawyers wrote.
The lawyers for the Justices wrote that the work remaining before closing consists mainly of completing supporting transaction documents, completing schedules that will be included with the transaction documents, completing an internal reorganization and more. The attorneys say they will submit an additional report July 10 to provide a further update on progress toward closing.
Kennedy Lewis is considering a financing deal that could pay off roughly $300 million in first-liens loans on The Greenbrier purchased earlier this year by White Sulphur Springs Holdings. More money could go to pay down other debts and, potentially, upgrade The Greenbrier property.
The West Virginia tax department has filed to intervene in the federal case, saying it needs to be able to protect the state’s interest in $4.4 million in liens on unremitted sales and personal income taxes.
Meanwhile, this week, the U.S. Internal Revenue Service leveled two liens totaling about $3.5 million on Greenbrier properties owned by the Justices.
In a statement, an attorney for the Justices said the $500 million financing arrangement could take care of those obligations.
“The liability will be resolved shortly as part of The Greenbrier’s impending financing transaction,” Charleston attorney Steve Ruby said.
The status report filed in federal court indicated the Justice business has been in contact with those owed money.
“Defendants have requested confirmation of payoff amounts from creditors and expect to receive those next week,” the lawyers wrote.