Greenbrier Hotel failed to pay back $35M COVID relief loan, lawsuit says

The Greenbrier Hotel, located in White Sulphur Springs, W.Va., is set to go to public auction Aug. 27 because of a default. The hotel is owned by Gov. Jim Justice and run by his family. (Getty Images)

A Louisiana bank has filed a lawsuit against The Greenbrier Hotel Corporation, alleging the Justice family-owned business took out a $35 million loan and has failed to make any payments.

First Guaranty Bank filed the suit against the hotel last month in United States District Court for the Middle District of Louisiana.

The lawsuit, first reported by West Virginia MetroNews , alleges the hotel , owned by the family of Gov. Jim Justice, took out the loan in December 2020, agreeing to pay back the $35 million “Main Street Loan” with interest. The loan was made under the provisions of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).

The loan became delinquent on Dec. 22, 2023 when the hotel did not pay the bank the 15% of the principal amount plus interest that was due, the complaint says.

As of July 15, the hotel owes a total of more than $36 million in principal, interest and fees on the loan, according to the complaint.

An email to the hotel was not immediately returned Wednesday.

The lawsuit is the latest in a series of financial struggles and allegations against companies owned by Justice and his family. The Greenbrier Hotel has been the center of many of these struggles over recent weeks and is scheduled to go to public auction on Tuesday due to the company defaulting on other loans. Justice family attorneys have filed a preliminary injunction to halt the sale of the hotel, with a hearing scheduled for that case at 9 a.m. Tuesday in Greenbrier County.

Justice is the Republican nominee for the seat currently held by Sen. Joe Manchin, I-W.Va., and is a heavy favorite to win the race in the November general election. He has repeatedly claimed the financial issues affecting his family’s businesses are nothing more than political attacks from Democrats who don’t want to see him elected to the Senate. The state Democrats on Tuesday called on Justice to drop out of the race for Senate.

SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX