The Greenbrier is rolling the hard six.
Lawyers for The Greenbrier say the closure of a $500 million financial deal requires Lottery to sign off on how it would affect the resort’s casino license. The Greenbrier lawyers say they can’t wait any longer and will have to go without it.
In a newly filed status report in an ongoing federal court case over control of The Greenbrier, lawyers for the historic resort said they can close a half-billion dollar deal by Friday.
But, “the Greenbrier has reluctantly decided that it will shut down its casino in order to close the transaction because the West Virginia Lottery (“Lottery”) has indicated that it will not consider the transaction by that date.
“This will result in the layoff of approximately 90 casino employees, which Defendants deeply regret, as well as a loss of revenue to the State, which is also regrettable.”
The status report detailing the possible casino closure was first reported by The West Virginia Record.
In a statement, Greenbrier representatives said casino employees are being provided WARN notices and will continue to receive pay and benefits during the 60-day notice period.
“We are hopeful this regulatory matter will be resolved during that period, allowing casino operations to resume and employees to return to work. If it is not resolved, we will have no choice but to terminate the affected positions,” said Charleston attorney Steve Ruby in a statement provided by a firm contracted by the Greenbrier owners, PLUS Communications.
“This issue is limited to casino operations. The Greenbrier remains fully open and operating, welcoming guests, meetings, conferences, weddings and other events as usual. We regret the uncertainty this regulatory delay creates for our employees and their families and remain focused on securing the necessary approval so casino operations can resume as quickly as possible.”
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.
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 has mostly been on hold while the Justices see through the financing possibility with Kennedy Lewis.
Now it’s heating up again as U.S. District Judge Frank Volk requires updates about the status of the financial deal and moves toward hearings next month.
Lawyers for the Justices have said the transaction is on track to close this Friday, except for a couple of major roadblocks, like review of the casino license.
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 West Virginia Lottery Commission doesn’t have a regular meeting scheduled until August 26. The Lottery Commission has a conference call scheduled for August 19 to discuss the agenda for that meeting a week later.
Lottery: ‘We will not be pressured’
West Virginia Lottery publicly released a three-page letter dated Wednesday in response to The Greenbrier’s threat to close the casino.
In it, acting Lottery Director David Bradley wrote that he had only been informed of the potential closure this week. Bradley wrote that representatives of Greenbrier Hotel Corporation have received warnings that Lottery needs ample time to conduct due diligence and review financial documents.
“That’s particularly true given that GHC is currently under financial watch and after this transaction is completed, the Kennedy Lewis Partnership will acquire 51 percent control of the Greenbrier, a significant change in ownership and control,” Bradley wrote.
Bradley continued by writing that attorneys for The Greenbrier have not accepted their own share of responsibility for delay in Lottery’s approval.
“You did not provide the Lottery with necessary final draft documents regarding the transactions until August 5, 2026. And you only wrote to me to request a special meeting that afternoon. At that time, the special meeting you requested be set for August 7 would have violated the West Virginia Open Government Proceedings Act,” Bradley wrote.
The acting lottery director concluded by saying that is still possible to be ready for the next scheduled meeting later this month if The Greenbrier provides final financial documentation while still being in compliance with the open meetings law.
“We will not be pressured to ignore this law by anyone regardless of status,” Bradley wrote.
Lawyers for The Greenbrier, in their latest status report, say they have provided Lottery with information over a couple of months and the cost of waiting is adding up.
“Defendants must pay to close their refinancing is increasing by approximately $145,000 per day because of interest charges, and that further delay will cost Defendants hundreds of thousands of dollars in additional professional fees,” wrote lawyers for The Greenbrier.
“Nonetheless, the Lottery has not yet confirmed when it will consider the Greenbrier’s approval request. Faced with no other practical options to close the transaction on a timely basis and avoid even higher costs of delay, the Greenbrier therefore intends to close the casino and conclude the transaction on Friday.”
The other side of the deal
The status report for The Greenbrier described another potential challenge: agreement with White Sulphur Springs Holdings.
“Notably, Defendants’ ability to close on Friday depends on cooperation from Plaintiff, which must provide a payoff letter and associated lien releases as part of the closing process,” wrote the lawyers for White Sulphur Springs Holdings.
“Plaintiff has insisted, with no valid reason, on an in-person closing, which is highly unorthodox for a transaction of this nature in 2026 and which Plaintiff knows will delay the ability of Defendants and KLIM to efficiently and timely record necessary documents in various county courthouses as part of closing.”
The lawyers for The Greenbrier also accuse White Sulphur Springs of complicating the closing through last-minute contractual changes.
“Defendants remain gravely concerned that Plaintiff is attempting to obstruct closing in an effort to derail the refinancing. Defendants will work through these most recent impediments and remain on pace for a Friday closing, but Defendants may well need to approach the Court for emergency relief if more obstacles are interposed,” wrote lawyers for The Greenbrier.
“Defendants will submit a further status report no later than Friday, August 14, 2026.”