Sen. Jim Justice’s family sues to keep control of The Greenbrier Resort in West Virginia

Republican Sen. Jim Justice and his family are suing to keep control of The Greenbrier Resort in West Virginia after a hotel-affiliated investor bought hundreds of millions of dollars of the family businesses’ debt.

The lawsuit, filed Sunday in Greenbrier County Circuit Court, seeks to prevent what the Justice family describes as a “deceptive” takeover attempt against the parent company of Omni Hotels & Resorts and its stakeholders.

Carter Bank & Trust and TRT Holdings “are attempting to snatch The Greenbrier resort from the local ownership of the Justice family by unlawful and deceptive means,” the lawsuit states.

This development comes after White Sulphur Springs Holdings, a newly formed subsidiary of Omni’s parent company, TRT Holdings, bought roughly $289 million in loans tied to Justice family businesses from Carter Bank.

The Justices say the bank acted in bad faith in agreeing that the loans be paid off at an agreed price of $300 million before blocking their ability to pay and selling their debt to TRT Holdings at a significant discount.

TRT Holdings initially offered to forgive $200 million in debt in exchange for a 50% ownership stake in The Greenbrier, which the Justices say they agreed to before it “abruptly reversed course.”

White Sulphur Springs Holdings recently filed a federal receivership lawsuit, seeking a court order to place The Greenbrier and related businesses under a third party, which could divest the family’s control over the historic hotel.

White Sulphur Springs Holdings alleges that “waste, fraud and abuse” is taking place within the Justice business empire, citing “substantial” resort revenues diverted to other ventures, “significant” unpaid taxes and unmet employee-related obligations, including employees’ health insurance premiums and 401(k) employer matching contributions.

The Justices say the defendants are trying to “pilfer one of West Virginia’s crown jewels” by filing for receivership.

The family is asking the court to halt any foreclosure or asset seizure and allow them to pay off their loans under what they describe as fair terms.

The Greenbrier has faced financial strains in recent years, and the competing lawsuits will ultimately determine ownership control over the luxury resort.