WHITE SULPHUR SPRINGS, W.Va. (WVDN) — The Greenbrier Hotel Corporation is once again confronting significant financial challenges as First Guaranty Bancshares, headquartered in Louisiana, files a lawsuit seeking more than $35 million.
The legal action stems from allegations that The Greenbrier failed to make payments on a loan issued during the COVID-19 pandemic. According to court documents, the loan was granted under the Main Street Program, a Federal Reserve initiative established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The Main Street Program was designed to provide financial support to small and medium-sized for-profit businesses and nonprofit organizations affected by the pandemic. The Greenbrier, a historic luxury resort, reportedly secured the loan to navigate the economic downturn caused by the COVID-19 crisis.
Documents indicate that The Greenbrier was not required to make payments during the first year of the loan. However, it was expected to start making monthly interest-only payments during the second year. The bank alleges that the loan became delinquent when The Greenbrier failed to pay the first 15% installment of the scheduled payments.
This lawsuit comes on the heels of a prior announcement that lawyers representing the owners of The Greenbrier Hotel have filed for a preliminary injunction to halt the auction of the resort, which is set to take place on August 27 to cover another debt.
Representatives from The Greenbrier have not yet commented on this newest lawsuit.
This legal dispute adds to the ongoing financial difficulties faced by The Greenbrier, which has previously weathered various economic challenges in recent years.
