GREENBRIER COUNTY, W.Va. (WCHS) — A new lawsuit filed by a Louisiana bank alleges that the Greenbrier Hotel Corporation – owned and operated by Governor Jim Justice’s family – failed to repay a $35 million pandemic relief loan.
The lawsuit, filed last month by First Guaranty Bank, alleges that the Greenbrier Hotel Corporation agreed to the terms of a loan totaling $35 million in 2020 under the federal CARES Act.
The bank said the loan came with a five-year phased repayment plan, with no payments due in the first year. The lawsuit alleges that the Greenbrier Hotel Corporation has not paid anything on its loan until 2024.
Including principal, interest and late fees, First Guaranty says it is demanding an amount of over $36.5 million.
The lawsuit adds to the already growing problems of the Greenbrier, which is set to go to foreclosure auction on Tuesday, August 27. A lawyer for the Justice family has stated that the famous resort will not be sold. A motion has been filed to stop the sale.
The foreclosure announcement came after a loan originally valued at $142 million was declared in default following its sale by JPMorgan to Beltway Capital.
A union council representing employees at the Greenbrier Hotel expressed concern earlier this week that employees could potentially lose their health insurance benefits.
