A Louisiana bank has filed a lawsuit against the Greenbrier Hotel Corporation, claiming the Justice family-owned company took out a $35 million loan and failed to make payments.
First Guaranty Bank filed the lawsuit against the hotel last month in the U.S. District Court for the Middle District of Louisiana.
The lawsuit, First reported by West Virginia MetroNews, the hotel claimsowned by the family of Governor Jim Justice, took out the loan in December 2020 and committed to repaying the $35 million Main Street Loan with interest. The loan was made under the provisions of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
The loan matured on December 22, 2023, when the hotel failed to pay the bank the 15% of the principal amount plus interest due, the complaint states.
According to the lawsuit, as of July 15, the hotel owed a total of more than $36 million in principal, interest and fees on the loan.
An email to the hotel was not immediately answered on Wednesday.
The lawsuit is the latest in a series of financial difficulties and allegations against Business owned by Justice and his family. The Greenbrier Hotel is the center from many of those struggles in recent weeks and is set to be sold at public auction on Tuesday as the company has defaulted on other loans. Attorneys for the Justice family have filed for a ephemeral restraining order to stop the sale of the hotel. A hearing on the case is scheduled for 9 a.m. Tuesday in Greenbrier County.
Justice is the Republican candidate for the seat currently held by Senator Joe Manchin (IW.Va.) and is considered the clear favorite to win the general election in November. He has repeatedly claimed The financial problems affecting his family’s businesses are nothing more than political attacks by Democrats who do not want to see him in the Senate. The Democrats of the State Justice on Tuesday called on him to drop out of the race for the Senate seat.
