The Greenbrier to Shut Down Casino, Cut Jobs Amid Refinancing Deal

The Greenbrier in White Sulphur Springs, West Virginia, could temporarily shut down its casino and fire its employees as part of a major refinancing arrangement.

Documents submitted in court and published by WCHS this week detailed the plans of the family of U.S. Senator Jim Justice, which is hoping to secure a financing agreement with Kennedy Lewis Investment Management (KLIM).

The $500 million framework would wipe out substantial debt obligations owed by The Greenbrier and contribute to future improvements made to the facility.

The Greenbrier closing casino… for now

Attorneys for the Justice family told U.S. District Judge Frank W. Volk on Thursday that the family may need to get rid of 90 employee positions as part of a plan to pay outstanding funds to a Texas-based hotel company. 

Although KLIM would effectively provide a loan to The Greenbrier, the deal would be framed as more of a partnership. The Justice family would be required to create a new holding company and provide KLIM first-lien collateral on important resort properties.

The expectation is for the deal to be completed before the end of the week. 

The expected shutdown of the casino — which houses live-dealer table games, slot machines, and more amenities — is related to an outstanding review by the West Virginia Lottery Commission, which is in charge of regulating licensed gambling outfits and platforms. The Commission would need to investigate the license transfer to the new holding company that would oversee resort operations, pursuant to the refinancing agreement. 

Although the Justice family does not expect the state gaming regulator to complete its review before the refinancing is agreed, the Justice family’s attorneys told the court that The Greenbrier was ready to proceed with its plan with KLIM and would close the casino to make it happen.

Squabbles and disputes

A statement provided by the Justice family highlighted lofty costs as the reason the casino needed to temporarily halt its casino operations.

“Due to the significant costs associated with any further delay in closing the transaction described below, the Greenbrier has reluctantly decided that it will shut down its casino in order to close the transaction,” wrote attorneys Steve Ruby and H. Rodgin Cohen.

The Greenbrier casino first opened 16 years ago. It was recently in the headlines for receiving a last-second license extension by the state’s gaming regulators thanks to an emergency meeting held by officials.

The new financing arrangement will save The Greenbrier from legal action raised by White Sulphur Springs Holdings, which acquired about $300 million of the property’s debt earlier this year, and later filed a lawsuit after the loan entered default. 

Previous complaints suggested that the Holdings company implemented last-second changes and abnormal closing requirements that complicated the refinancing. The Greenbrier’s team also said that it has supplied the necessary information to state officials for months, and that delays to a license transfer are financially punitive.

The West Virginia Lottery Commission denied that it was solely responsible for any timing-related issues.