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The West Virginia Lottery Commission has approved Kennedy Lewis Investment Management’s majority ownership of The Greenbrier Resort and Casino, clearing a key regulatory step in the property’s restructuring.
The commission voted unanimously to approve the casino license under the new ownership structure, with Kennedy Lewis taking a 51% stake in Greenbrier Holdco LLC. Sen. Jim Justice and his family retain the remaining 49%.
Kennedy Lewis takes control of the board
The approval also gives Kennedy Lewis effective control of the property’s board. According to the source, Kennedy Lewis representatives now hold three of the five board seats, alongside Brian Dubin and Doug Gerowski, while Justice and his daughter hold the other two seats. Nathan Lloyd was approved as chairman.
Acting West Virginia Lottery Director David Bradley said Kennedy Lewis brings “a good reputation” and “stability in ensuring a positive growth to the financial integrity of The Greenbrier.”
The Greenbrier is a 710-room resort in White Sulphur Springs with four golf courses, a spa, and a casino.
Restructuring resolves debt and tax issues
The transaction was described as a roughly $500 million loan and joint venture. The source said it paid off substantial debt after Carter Bank and Trust sold the loans earlier this year to an affiliate of Omni Hotels & Resorts.
It also settled more than $10 million in tax liabilities, including about $2.6 million owed to the state, along with local and federal obligations.
Steve Ruby, legal counsel for the Justice family, said the restructuring separates The Greenbrier from the family’s other businesses so that “all Greenbrier earnings will now stay in the Greenbrier joint venture.” He also said the agreement is meant to provide resources to address deferred maintenance and improve the guest experience.
State oversight is not over
Even with the ownership change approved, The Greenbrier remains on the West Virginia Lottery Commission’s financial watch list.
That means the property is moving forward under continued state oversight as the new ownership structure takes hold. The source did not report any additional conditions attached to the approval or say how long the resort and casino will remain on the watch list.
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Source: As reported by sccgmanagement.com.
