The federal judge presiding over a fight for control of The Greenbrier Hotel has fired a shot in the air.
U.S. District Judge Frank Volk of the Southern District of West Virginia entered a show cause order Sunday telling lawyers for The Greenbrier to put in writing why the court should not move ahead with proceedings that have been delayed more than a month.
“Accordingly, the Court ORDERS Defendants to show cause in writing by 8:30 a.m. on Tuesday, July 21, 2026, explaining why the Court should not forthwith enter an order setting the further proceedings necessary for a prompt adjudication of the merits,” Volk wrote.
Volk is overseeing a case where the Omni Hotels affiliate White Sulphur Springs Holdings owns about $300 million in first-lien debt on The Greenbrier Hotel. Lawyers for the holding company say their collateral is at risk, and they’ve been asking the judge to appoint a third-party receiver to oversee the hotel while pushing out the owners, Senator Jim Justice and his family business.
The Justices and their Greenbrier Hotel Corporation have been pursuing a possible $500 million financing deal with the New York firm Kennedy Lewis Investment Management, which could pay off White Sulphur Springs Holdings and other entities owed money while also providing enough to invest in long-needed hotel improvements.
On May 22, lawyers for the Justices requested a delay in court activity for 60 days to work toward completion of the deal.
On May 30, Volk then granted the delay “with the expectation that closing will occur on or before July 16, 2026.”
Volk had 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.
That date has come and gone, but with a bunch of back-and-forth.
On July 10, lawyers for the Justices wrote in a status report that more time could be necessary to finish the big financial deal. Factors included a casino license review by West Virginia Lottery and “and any discussions that may occur between the parties to this case regarding resolution of their respective legal claims.”
The lawyers for the Justices wrote in that brief that the transaction should be closed by the week of July 20, which hits this Monday.
“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,” wrote lawyers for The Greenbrier.
On July 15, attorneys for White Sulphur Springs Holdings entered a legal filing, casting skepticism on the financial deal. The filing by White Sulphur Springs Holdings also outlined a series of severe financial and legal challenges facing the Justice family and their associated business entities.
Lawyers for White Sulphur Springs Holdings had indicated no title company, escrow agent or the new lender, Kennedy Lewis, has reached out regarding payoff amounts or closing checklists.
The lawyers for White Sulphur Springs Holdings questioned whether the Greenbrier owners have actually secured the promised refinancing and if they are attempting to avoid satisfying final court judgments through delays and shifting legal strategies.
Lawyers for The Greenbrier responded to say they’d been in touch repeatedly with White Sulphur Springs Holdings about a payoff amount. “Plaintiff continues to misrepresent the facts because it has no genuine interest in being repaid; its goal, rather, is to take The Greenbrier,” wrote the lawyers for the hotel.
Now the judge wants the lawyers for The Greenbrier to explain, in writing, where the transaction actually stands.
The judge addressed another recent development in the case, too.
On Friday, companies that have been battling Justice family coal companies in court for more than a decade, New London Tobacco Market and Fivemile Energy asked to intervene in The Greenbrier lawsuit.
The new entrants are not aiming to snag the historic hotel, but contend entering a court case focused on The Greenbrier is necessary to protect their debts.
Judge Volk ordered the parties in The Greenbrier case to respond by 5 p.m. Wednesday with their positions on whether New London Tobacco Market and Fivemile Energy should be allowed to intervene.