Greenbrier Completes Refinancing Plan, Casino to Remain Open

_{The Casino Club at The Greenbrier Resort will not close after all thanks to a $500 million deal that came together on Friday. (Photo: Andre Jenny / Alamy)}

Senator Jim Justice (R-West Virginia) and his family announced Friday that they had completed a $500 million deal with Kennedy Lewis Investment Management that will give the financial firm the controlling interest in The Greenbrier, the historic West Virginia resort that had been struggling with mounting debts.

The move will prevent the potential closure of The Casino Club at the Greenbrier, something the Justice Family had said would be necessary in order to keep the resort open if the transaction wasn’t completed in short order.

Justices, Governor Welcome Kennedy Lewis to West Virginia

Under the details of the $500 million deal, Kennedy Lewis will take a 51% controlling interest in the resort while injecting enough cash to give The Greenbrier a long-term financial lifeline.

“Today marks an exciting new chapter for The Greenbrier and an important moment for everyone who loves this resort,” Jill Justice, a member of the Justice Family Group, said in a statement. “This property is so much more than a resort. It is part of the history of West Virginia, an economic anchor for this community and a place where generations of families have celebrated the most important moments of their lives. Our collaboration provides the financial strength, expertise and long-term investment needed to protect everything that makes The Greenbrier special.”

West Virginia Gov. Patrick Morrisey also weighed in on the transfer of ownership, vowing to make sure that the outside firm would maintain the historic property.

“With Kennedy Lewis now officially controlling the resort, I welcome them to West Virginia,” Morrisey said. “I also want everyone to know – especially those in Greenbrier County – that I will do everything in my power to protect this historic West Virginia jewel and its employees. I have asked the Lottery Commission to take all necessary steps to prevent the loss of Greenbrier employees during this transition of ownership. I’m hopeful that Kennedy Lewis and the entire Greenbrier team will help restore the beauty of the resort to its former glory.”

Casino Remains Open While Lottery Vets New Owners

Soon after the deal was announced, the West Virginia Lottery Commission official authorized The Greenbrier to continue its casino operations through the completion of the transaction. However, because the new ownership structure includes a five-person board with three members appointed by Kennedy Lewis, keeping The Casino Club open comes with some conditions.

“You will be in compliance with the law so long as the unapproved board members of the holding company exert no authority over the operations of the casino [until the Lottery Commission votes to approve them],” West Virginia Lottery Acting Director David R. Bradley wrote in a letter to a Greenbrier lawyer. “As a result, the casino can continue to operate prior to the final vote of the Commission.”

That vote will likely come during the commission’s next meeting, which is scheduled for Aug. 26. While The Greenbrier had requested an emergency meeting, Bradley said the situation didn’t constitute an unexpected emergency, which would be required for such a meeting under the West Virginia Open Governmental Proceedings Act.

The injection of cash from Kennedy Lewis is designed to stave off a court-appointed receivership, which had been requested by White Sulphur Springs Holdings, which had alleged that the resort was being mismanaged. Under the Justice family’s control, the resort had accumulated over $300 million in debt, and had more than $8 million in federal tax lien notices filed against it.

Given those mounting debts, the Justices told a federal court that it would need to close the casino if the refinancing deal didn’t go through soon, arguing that the West Virginia Lottery had refused to consider the plan. If the casino had closed, about 90 workers would have been laid off.

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