WHITE SULPHUR SPRINGS, W.Va. (WVDN) — The corporate parent of Omni Hotels & Resorts moved in federal court Friday to place The Greenbrier resort into receivership, alleging that the family of U.S. Sen. Jim Justice diverted resort revenues to other businesses while failing to pay taxes and employee benefits.
The motion, filed in the U.S. District Court for the Southern District of West Virginia by White Sulphur Springs Holding LLC, marks a swift escalation in the financial battle over the historic landmark known as “America’s Resort.”
White Sulphur Springs Holding LLC, a subsidiary of Dallas-based TRT Holdings, recently acquired more than $200 million in first-lien debt from Carter Bank & Trust. As the primary lender, the company is now asking the court to appoint a neutral third party to take control of the resort’s management and assets.
In the filing, attorneys for the TRT Holdings subsidiary alleged that the Justice family has not been operating the 710-room resort in a fiscally responsible manner. The motion claims that:
Revenue Diversion: Income generated by The Greenbrier was allegedly funneled into unrelated Justice family businesses.
Unpaid Obligations: The resort owes significant unpaid taxes and has failed to make required employee health insurance premiums and 401(k) matching contributions.
Maintenance Concerns: The filing suggests the property is not being properly maintained under its current leadership.
“Defendants have been diverting substantial amounts of revenue generated from The Greenbrier Resort to their other, unrelated businesses,” the complaint stated.
TRT Holdings, led by billionaire Robert Rowling, is a major player in the luxury hospitality industry. Its best-known brand, Omni Hotels & Resorts, operates over 50 properties, including the Omni Homestead Resort in nearby Hot Springs, Virginia.
The acquisition of the debt from Virginia-based Carter Bank & Trust ended a decade-long, often litigious relationship between the bank and the Justice family. While the Justice family initially expressed relief at the departure of Carter Bank, the move for receivership indicates their new lender may be pursuing a more aggressive path toward repayment or foreclosure.
Sen. Jim Justice, a Republican who bought the resort out of bankruptcy in 2009 for $20.1 million, has long dismissed rumors of an Omni takeover as “smoke and mirrors.”
Earlier this week, Jill Justice, the senator’s daughter and president of the resort, said the family looked forward to “productive discussions” with the new lender. The Justice family has not yet issued a formal response to Friday’s receivership motion.
Established in 1778, The Greenbrier is a National Historic Landmark that has hosted 28 U.S. presidents and housed a Cold War-era bunker for Congress. Beyond its historical significance, it is a primary economic engine for southeastern West Virginia, employing nearly 2,000 people.
If a judge grants the motion for receivership, the appointed receiver would have the authority to oversee the resort’s daily operations, potentially leading to a sale or a total change in management to satisfy the outstanding debt.
