A judge has approved a Virginia bank’s request to hold off on a hearing scheduled on the proposed auction of property that looms large in Gov. Jim Justice’s financially distressed business empire.
Greenbrier County Circuit Court Judge Robert Richardson on Friday approved a request from Carter Bank & Trust to hold off on a hearing that was set for 9 a.m. April 12 on a proposed auction of Greenbrier Sporting Club property.
Carter Bank had asked the court to hold off on the hearing to allow continued discussions with Greenbrier Sporting Club companies and other interested parties.
The move comes in a case in which Greenbrier Sporting Club Development Co. and Greenbrier Sporting Club Inc. are trying to block the sale of club properties to Carter Bank as the bank looks to collect on over $300 million Justice and his family have admitted they owe the bank.
The Justices have argued that Carter Bank breached contractual obligations and interfered with their relationships with other lenders.
The proposed auction was originally set for March 5 at the Greenbrier County Courthouse. The Gazette-Mail published a notice of sale of the property that listed Greenbrier Sporting Club Development Co. and Greenbrier Sporting Club parcels as scheduled for auction, citing a 2015 trust deed from the two companies to trustees of Carter Bank totaling $250 million.
The companies filed a preliminary injunction to block the sale in February, arguing that the trust deed is invalid and saying that no property may be sold while the underlying debt or its amount is being disputed. That move prompted Carter Bank to say it would reset the March 5 sale date to allow the court to appropriately consider matters raised in a case.
Sporting Club members might take legal action
The Greenbrier Sporting Club is a private equity club that offers memberships to those who buy real estate at The Greenbrier resort, which is owned by Justice.
Carter Bank said in a past court filing it “understands that homeowners within the Greenbrier Sporting Club development are also very interested in this matter and may be considering undertaking action of their own.â€
Some club members have disputed Justice family ownership interest in the club, saying they hold that interest instead.
The Greenbrier Sporting Club companies have called the assets Carter Bank seeks to sell “unique and irreplaceable,†predicting “ongoing and permanent disruption†to the Sporting Club and The Greenbrier if the sale moves forward.
In their preliminary injunction request, the Justice businesses said the planned sale jeopardizes the jobs of nearly 200 employees who work at the properties Carter Bank plans to sell and “would harm the broader business of The Greenbrier,†which the filing says employs nearly 2,000 people.
The filing noted that the Greenbrier Sporting Club is an organization of owners of private residences and lots in a development next to The Greenbrier resort and calls premium properties adjacent to The Greenbrier “extremely scarce.â€
“[I]f these are sold, they will be lost to [the Justice companies] forever,†the filing predicted.
The filing said properties Carter Bank threatens to sell include The Summit and The Lodge, Sporting Club-owned facilities at which dining and recreational activities are available to club members. Also targeted for sale, according to the filing, is The Snead, a par-71, 7,041-yard golf course for members.
Mike Tony covers energy and the environment. He can be reached at 304-348-1236 or mtony@hdmediallc
