Jim Justice Greenbrier Hotel Auction: Details and Financial Struggles

Auction details and financial struggles

• Auction date and reason: The Greenbrier Resort foreclosure sale is set for August 27, 2024 due to defaulting on a $142 million loan from JPMorgan Chase

• Loan default: Beltway Capital Management, current holder of the promissory note, declared the loan in default. The original $142 million loan from 2014 was reduced to $9.4 million by June 2024

• Attempts to halt auction: Attorneys for the West Virginia governor's hotel filed a preliminary injunction to stop the sale, with a hearing scheduled for 9 AM on the auction day in Greenbrier County

• Governor's stance: Despite the Jim Justice Greenbrier Hotel auction proceedings, Governor Jim Justice insists the resort "won't be sold"

Additional financial issues

• Unpaid taxes and liens: As of July 2024, the Greenbrier Hotel Corp. still owes the state $2.7 million in tax liens and penalties

• COVID relief loan default: The Greenbrier Resort failed to repay a $35 million "Main Street Loan" taken under the CARES Act in December 2020. As of July 15, 2024, the total owed, including interest and fees, exceeds $36 million

• Employee health insurance concerns: Reports suggest the West Virginia governor's hotel hasn't made payments to the company insuring health benefits for its 2,000+ employees for the past 4 months, potentially leaving workers without coverage

Impact on West Virginia tourism

• Importance to state tourism: The Greenbrier Resort, facing a foreclosure sale, is a National Historic Landmark and one of West Virginia's most iconic locations

• Tourism industry growth: Despite the Jim Justice Greenbrier Hotel auction concerns, West Virginia's tourism industry saw record growth in 2023, with a total economic impact of nearly $9 billion and 75 million visitors

FAQ

What is happening with the Greenbrier Resort owned by West Virginia Governor Jim Justice?

The Greenbrier Resort, owned by West Virginia Governor Jim Justice, is facing a foreclosure sale with a public auction scheduled for August 27, 2024, due to defaulting on a $142 million loan.

Why is the Jim Justice Greenbrier Hotel auction taking place?

The auction is occurring because the resort defaulted on a $142 million loan from JPMorgan Chase. Beltway Capital Management, the current holder of the promissory note, declared the loan in default.

Can the West Virginia governor's hotel bankruptcy be prevented?

Governor Jim Justice insists the resort "won't be sold," and his attorneys have filed a preliminary injunction to stop the sale. A hearing is scheduled for 9 AM on the auction day in Greenbrier County.

What other financial issues is the Greenbrier Resort facing?

In addition to the foreclosure sale, the resort owes $2.7 million in tax liens and penalties to the state, has defaulted on a $35 million COVID relief loan, and reportedly hasn't made health insurance payments for its employees in four months.

How might the Greenbrier Resort foreclosure sale impact West Virginia tourism?

The Greenbrier Resort is a National Historic Landmark and one of West Virginia's most iconic locations. However, despite the auction concerns, West Virginia's tourism industry saw record growth in 2023, with a total economic impact of nearly $9 billion and 75 million visitors.