The Greenbrier could temporarily close its casino and issue layoff notices to about 90 employees as the Justice family moves to complete a major refinancing agreement tied to an ongoing legal dispute over the historic West Virginia resort.

Court filings submitted this week and published by WHCS show that the family of U.S. Senator Jim Justice is attempting to finalize a financing arrangement with New York-based Kennedy Lewis Investment Management (KLIM). The proposed transaction, valued at up to $500 million, is intended to address substantial debt obligations connected to The Greenbrier and support future investments in the property.

The planned casino shutdown stems from a pending review by the West Virginia Lottery Commission regarding the transfer of the casino license to a new holding company that would oversee resort operations under the refinancing structure. According to filings submitted to U.S. District Judge Frank W. Volk, the parties involved do not expect the commission to complete its review before the targeted closing date for the refinancing transaction.

The Justice family’s attorneys told the court that the resort had decided to proceed with closing the casino in order to complete the refinancing process.

“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.

Refinancing Effort Linked to Ongoing Debt Dispute

The financing proposal arrives amid litigation involving White Sulphur Springs Holdings (WSSH), an affiliate of Texas-based TRT Holdings and Omni Hotels & Resorts. WSSH acquired approximately $300 million of The Greenbrier’s debt earlier this year and has pursued legal action after the loan entered default.

The company has asked the court to appoint a receiver to oversee The Greenbrier and related assets while seeking measures that would limit the Justice family’s control of resort operations.

The Justice family argues that the KLIM transaction would resolve the debt dispute and eliminate the need for receivership proceedings. Court documents indicate that the financing package would be secured by the resort, associated properties, timber holdings, and other assets connected to the family. The arrangement would also require the creation of a new holding company and provide KLIM with first-lien collateral on major resort properties.

Attorneys representing the Justice family stated that the refinancing remains on schedule, although they identified two significant obstacles: obtaining regulatory approval tied to the casino license and securing cooperation from WSSH during the closing process.

The attorneys alleged that WSSH introduced last-minute changes and unusual closing requirements that could complicate the transaction. They claimed the plaintiff’s actions risk delaying or disrupting the refinancing effort and suggested emergency court intervention could become necessary if additional issues arise.

Lottery Commission Pushes Back on Criticism

The Greenbrier’s legal team has argued that the resort has supplied requested information to regulators for more than two months and responded promptly to inquiries. The attorneys also stressed that delays carry significant financial consequences.

According to court filings, interest costs associated with the refinancing are increasing by roughly $145,000 each day. The attorneys added that prolonged delays could generate substantial professional fees and other expenses.

The West Virginia Lottery Commission, however, disputed suggestions that it bears sole responsibility for the timing issues. Acting Lottery Director David Bradley said in a public letter that the agency only learned this week that casino closure was being considered.

Bradley wrote that regulators require sufficient time to review financial records and conduct due diligence, particularly because the transaction would result in Kennedy Lewis obtaining a controlling interest in the Greenbrier operation.

“We will not be pressured to ignore this law by anyone regardless of status,” Bradley wrote.

The Lottery Commission’s next regular meeting is scheduled for August 26, with a conference call planned on August 19 to discuss the agenda.

Employees Receive WARN Notices as Uncertainty Continues

The Greenbrier’s casino, which opened in 2010 after the Justice family acquired the resort out of bankruptcy, has become a significant source of tourism activity, employment and tax revenue in the state.

Resort representatives confirmed that casino employees are receiving WARN notices while continuing to receive pay and benefits during a 60-day notification period. The Justice family’s court filing similarly acknowledged the impact of the casino closure.

“This will result in the layoff of approximately 90 casino employees, which Defendants deeply regret, as well as a loss of revenue to the State, which is also regrettable.”

The latest developments arrive as additional financial pressure emerges. Reports indicate that the Internal Revenue Service recently filed tax liens totaling more than $8 million against The Greenbrier related to unpaid payroll withholding taxes, along with a separate lien of nearly $830,000 against the Greenbrier Clinic.

Judge Volk has required continued updates on the refinancing effort as the legal dispute moves forward, with the parties expected to provide further information regarding the status of the transaction and the casino license review.