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The West Virginia Lottery Commission has approved the financing transaction and ownership changes tied to a new joint venture at The Greenbrier, clearing the way for Kennedy Lewis Investment Management to take a controlling stake in the resort’s parent company.
The commission voted unanimously Wednesday afternoon. Under the new structure, Kennedy Lewis Investment Management, or KLIM, will hold 51% of Greenbrier Holco LLC, while the Justice family will hold 49%.
For West Virginia, the decision matters because The Greenbrier’s casino operates under Lottery Commission oversight. State officials said the deal should improve the property’s financial stability, though the resort will remain on the commission’s quarterly financial watch list for the current fiscal year.
New ownership structure gives KLIM board control
The new parent company is Greenbrier Holco LLC. KLIM-appointed executive Lloyd Nathan, whose background includes hospitality and gaming experience with MGM Resorts International, will serve as chairman of The Greenbrier’s board.
The board will have five members, with KLIM appointing three seats and the Justice family appointing two. Dr. Jill Justice will fill one of the family’s seats. The second Justice family appointee has not yet been named and will still need Lottery Commission approval.
Acting Lottery Director David Bradley said staff spent significant time reviewing the transaction and its paperwork. Commission staff and an outside accountancy firm told regulators they were comfortable with the arrangement.
Deal is meant to resolve debt and tax issues
According to the source report, the agreement was finalized Aug. 14 after negotiations that began in May. A redacted term sheet outlined a non-binding $500 million financing proposal from KLIM that was intended to pay major creditors and support capital improvements.
The transaction was described as resolving a previous debt crisis involving about $380 million held by White Sulphur Springs Holdings. It also involved paying more than $10 million in outstanding county, state, and federal tax liens tied to The Greenbrier and related properties.
A separate lawsuit between the Justice family and TRT Holdings was dismissed after payment of the outstanding debt, according to the report. TRT Holdings had purchased the Greenbrier loan debt from Carter Bank and Trust in March.
What West Virginia should watch next
The clearest near-term issue for regulators is ongoing financial oversight, not a reported change to casino access or gaming operations. Gov. Patrick Morrisey said he was hopeful the new controlling owner would bring needed stability to the resort, while his administration continues monitoring the casino and jobs tied to the property.
Readers should also watch for the naming of the remaining Justice family board member, which will require Lottery Commission approval.
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Source: As reported by Steven Allen Adams.
