A federal judge overseeing a court fight over control of The Greenbrier Hotel has allowed Senator Jim Justice and his family more time to work on a financial deal while also setting deadlines and hearings that could rev up the case again.
U.S. District Judge Frank Volk entered the order Monday in U.S. District Court for the Southern District of West Virginia.
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, Justice and his family business.
The Justices and their Greenbrier Hotel Corporation say a $500 million deal could pay off White Sulphur Springs Holdings and other entities owed money while also providing enough to invest in long-needed hotel improvements.
Attorneys for the Justices say completion is getting closer for a $500 million financing deal with the New York firm Kennedy Lewis Investment Management but have been asking the court for more time.
Volk first granted a delay on May 30 “with the expectation that closing will occur on or before July 16, 2026.”. Now the lawyers for The Greenbrier have been requesting that the court grant until August 7 to finalize the $500 million refinancing transaction.
Volk in his Monday order agreed to the extension, which would conclude at the end of next week.
“Nevertheless, these proceedings have now been suspended for over two months, and Defendants’ anticipated timeline has shifted considerably since the original request,” Volk wrote.
“Given the potential for further prejudice to WSSH as a result of any further delay, the Court will set herein a schedule for further proceedings in the event the transaction does not close as anticipated.”
The judge directed lawyers for the Justices to file a status report no later than July 28 and then a second no later than July 31.
Volk then set a prehearing conference date of 10 a.m. Sept. 3 in Charleston, a deadline to submit findings of fact and conclusions of law by Sept. 9 and an evidentiary hearing at 10 a.m. Sept. 16 in Charleston.