The Greenbrier casino will continue operating while the West Virginia Lottery Commission reviews a joint venture between the resort’s Justice family owners and Kennedy Lewis Investment Management.
The transaction gives Kennedy Lewis a role in the White Sulphur Springs resort following months of disputes over its debt and control.
The parties did not disclose the venture’s ownership split, financing terms or how much capital will be allocated to the property.
Court filings previously described a proposed Kennedy Lewis financing package worth up to $500m. The funding was intended to refinance existing obligations and support capital improvements at the resort.
Carter Bank and Trust sold approximately $289m in loans linked to The Greenbrier and other Justice family interests to White Sulphur Springs Holdings earlier this year. The buyer is affiliated with TRT Holdings, which owns Omni Hotels & Resorts.
White Sulphur Springs Holdings subsequently sought the appointment of a receiver in federal court, alleging defaults and financial mismanagement.
The Justice family filed separate state litigation accusing TRT Holdings and Carter Bank of improperly pursuing control of the resort. Both defendants denied those allegations.
The new venture also follows heightened financial oversight from West Virginia regulators. The Lottery Commission renewed The Greenbrier casino’s license in June after receiving a delayed financial report, but required quarterly reviews while the resort pursued debt refinancing.
The review found negative working capital of approximately $240m at the wider Justice Family Group. It also recorded roughly $158m in annual revenue and net income exceeding $9m. The casino itself generated nearly $15m in revenue and $6.9m in net income.
Kennedy Lewis has appointed Lloyd Nathan as Chairman of The Greenbrier’s board. Nathan previously spent close to a decade with MGM Resorts International and currently chairs the company that owns the Rio Hotel & Casino landlord in Las Vegas.
Greenbrier Chairman, Lloyd Nathan, said: “Our intent is not to change what makes The Greenbrier special but to invest in its future.”
The Lottery Commission has authorized uninterrupted casino operations while it considers final approval of the ownership structure. The resort will also remain open throughout the transition.
In July, Global Gaming Insider reported that the Commission had renewed the casino’s license while placing the property under financial watch, with quarterly reporting linked to the unresolved refinancing process.
The Greenbrier casino opened in 2010 after Greenbrier County voters approved resort gaming in a 2008 referendum