WHITE SULPHUR SPRINGS, W.Va. (WVDN) — A federal judge has scheduled a May 11 hearing to determine if the Justice family will be forced to surrender control of The Greenbrier Resort to a court-appointed receiver.
U.S. District Judge Frank Volk set the 9:30 a.m. evidentiary hearing following an “emergency” motion by White Sulphur Springs Holdings LLC, an affiliate of Omni Hotels. The company, which recently acquired nearly $300 million in first-lien debt, is asking the court to appoint hotel industry expert Michelle Russo as receiver.
If granted, the receivership would appoint a neutral third party to take full operational and financial control of the resort from the family of Gov. Jim Justice. Lawyers for the debt holders allege “financial malfeasance.”
The Justice family has characterized the move as a “sham” and a hostile takeover attempt by a competitor, noting that TRT Holdings also owns the Omni Homestead Resort in nearby Hot Springs, Virginia. In recent filings, the Justice family asked the court to stay the federal proceedings, arguing the resort is significantly oversecured with collateral values exceeding $1 billion.
The Greenbrier, known as “America’s Resort,” has been owned by the Justice family since 2009. While the resort remains open to guests, the outcome of the hearing could determine who manages the property’s daily operations and long-term financial obligations.
