Rowlings and Senator Justice Clash Over Greenbrier Resort

A high-stakes lender battle is brewing over one of the country’s most storied resorts.

The Dallas billionaire family that owns Omni Hotels moved to seize control of the Greenbrier Resort in White Sulphur Springs, West Virginia, setting off a legal brawl with its owner, former West Virginia Gov.-turned-U.S. Sen. Jim Justice. The fight centers on nearly $290 million in debt and could determine the future of the 11,000-acre luxury property.

The clash escalated this month after Robert and Blake Rowling, through their firm TRT Holdings, purchased the resort’s first-lien debt from Martinsville, Virginia–Carter Bank & Trust. According to The Dallas Morning News, the Rowlings are now asking a federal judge to appoint a receiver to take over the Greenbrier and related properties, citing alleged defaults and mismanagement by the Justice family.

Justice isn’t backing down. Days after the federal filing, his family sued in West Virginia state court, accusing the Rowlings, Carter Bank and others of conspiring to “pilfer” the historic resort through deceptive tactics, according to the outlet. The suit seeks to unwind the loan sale and allow the family to refinance at what it calls a fair payoff.

At the center of the dispute is a widening valuation gap. Justice claims the Greenbrier is worth more than the roughly $360 million owed on the property. The Rowlings argue the resort is in distress, estimating it needs $100 million to $200 million in capital improvements and pointing to unpaid taxes, missed employee benefits payments for health insurance and retirement savings plan contributions, as well as alleged diversion of revenue to other Justice-owned businesses.

The standoff has already landed in court. A federal judge is set to hear arguments on May 11 on whether to install a receiver, a move that would hand operational control of the resort to a third party and potentially prompt a sale, according to the publication. Parallel proceedings in state court could drag out the fight for years.

The debt trail reveals how the property reached this point. Carter Bank granted the Justice family 14 forbearance agreements over two years before selling the loans. Justice claims the bank initially agreed to a $300 million payoff but later raised the price, scuttling refinancing efforts and paving the way for TRT’s purchase.

There were recent attempts to strike a deal, as the two sides met at the Greenbrier earlier this month. TRT floated a proposal to forgive $200 million in debt in exchange for a 50 percent ownership stake, according to Justice’s lawsuit. The Justice family says it agreed in principle before TRT withdrew the offer. Blake Rowling characterized the meeting differently, calling it unproductive and signaling a shift toward enforcement.

TRT already held a smaller, second-lien position on the resort and has been actively buying distressed hospitality debt. If the Justice family pays off the loan, TRT exits with a profit, according to the outlet. If not, it could end up owning one of the country’s most iconic resort destinations.

The Rowlings argue that the 710-room Greenbrier, with its golf courses, restaurants and sprawling grounds requires a major capital infusion to compete with top-tier resorts. They claim to be one of the few operators with the scale and experience to pull it off, pointing to recent nine-figure renovations at legacy properties in Virginia and Texas.

The Greenbrier has been a centerpiece of Justice’s business empire since 2009, even as his broader portfolio has come under pressure. Forbes recently estimated his debt load could exceed $1 billion.

— Eric Weilbacher