The owners of The Greenbrier Hotel, Senator Jim Justice and his family, are working on a review by the state Lottery Commission about how the resort’s casino license would be affected by a major financial deal.
Lawyers for the Justices say they have also received payoff amounts from creditors. But as they approach a deadline set by a federal judge next week, the lawyers for the Justices say more time could be necessary to finish the big financial deal.
Referring to West Virginia Lottery Commission, lawyers for the Justices wrote in a new status report filed in a federal case, “Other preconditions to closing include the completion of the WVLC’s review process and any discussions that may occur between the parties to this case regarding resolution of their respective legal claims.”
When he was governor, Jim Justice’s administration oversaw West Virginia Lottery. Political rival Patrick Morrisey, the current Republican governor, now leads the executive branch agencies including Lottery. The current makeup of the commission is a mix of their appointees.
The Justices are working on a $500 million financial deal with Kennedy Lewis Investment Management LLC, which is a New York-based alternative asset management firm focused on opportunistic and private credit.
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, an affiliate of Omni Hotels & Resorts. More money could go to pay down other debts and, potentially, upgrade The Greenbrier property.
This is all unfolding in U.S. District Court for the Southern District of West Virginia, where White Sulphur Springs Holdings filed a 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 had set “the expectation that closing will occur on or before July 16, 2026,” which is this coming Thursday.
Volk indicated that if there’s a push to delay beyond that, the court’s patience could grow thin.
“If Defendants seek further extensions for either (1) more extended negotiations with, or financing due diligence by, the financing partner, or (2) to allow additional forays with other lenders, the balance of prejudice will likely shift rather abruptly,” Volk wrote in a May 30 order granting a continuance.
Now, as the July 16 date approaches, lawyers for the Justices say they might need more time.
“Defendants and KLIM anticipate that, subject to the WVLC’s review timeline and any further discussions between the parties to this case, the transaction should be able to be closed by the week of July 20, 2026,” lawyers for the Justices wrote in a status report filed Friday evening in federal court.
The lawyers for the Justices wrote that they’re mindful of the July 16 deadline “and have been working diligently to close the transaction by that date.
“Due to the complexity of the transaction, a brief additional period may be required to close, but Defendants and KLIM continue to affirm their commitment to close the transaction expeditiously. Defendants will continue to update the Court as appropriate or as requested by the Court.”
The amount of the financing, as described in a term sheet filed in federal court, is up to $500 million.
The primary parties include Justice Family Group LLC and a new holding company and subsidiary to be created prior to closing, called Greenbrier TopCo.
The loan is to be secured on a first-lien basis by a pledge of 100% equity in the borrower and all Greenbrier assets. Collateral also includes development projects, land and timber farms.
It also includes personal guarantees by some of the parties, although specific names are redacted in the exhibit. Jim Justice and several of his family members have signed personal guarantees in past financial arrangements.
One factor apparently under scrutiny is how the financial arrangement could affect The Greenbrier casino license.
The Greenbrier’s casino was established in 2010, a year after the historic hotel was purchased out of bankruptcy by Jim Justice, a former governor now serving as a U.S. senator, and his family. The casino brings in millions of dollars a year as a tourism destination, employer and tax source.
Late last month, the state Lottery Commission approved renewal of the resort’s casino license, although it was up against deadline and unusually dramatic after mandatory audit information was submitted at the last minute. The approval came with heightened scrutiny of quarterly reports about The Greenbrier’s finances.
Now, relating to the big financial deal, attorneys for the Justices wrote that, “Materials have been submitted to the West Virginia Lottery Commission (“WVLC”) for its review of the proposed transaction as it relates to The Greenbrier’s casino license.”