Looks like he owes at least a $Billion. I think he's like someone using their credit cards to pay their car loans...Recently Forbes lowered his net worth to about $450 million, but they didnt mention anything about this loan in VA. He told Forbes the Greenbrier is worth $1 billion .
Update from Forbes... seems the bank expects he pay the money back!!
In a remarkable lawsuit filed on Memorial Day, West Virginia Gov. Jim Justice — the former coal-mining billionaire — has accused his family’s longtime lender Carter Bank & Trust of orchestrating a “tortious scheme” that has thrown the solvency and future of his business empire into jeopardy.
What does Justice, his family, and companies allege? That Carter Bank, over nearly 20 years, loaned them more than $700 million, then had the gall to expect to be paid back on time.
According to Justice’s complaint, bank executives acting in bad faith purposefully “induced” his companies to default on loans (rather than continue to extend-and-pretend).
In what’s potentially the most dramatic development, Justice accuses Carter Bank of attempting to “scuttle” his attempts at renegotiating terms on millions of dollars of loans owed by his Greenbrier Hotel, which came due June 1. That’s just one day after he filed the lawsuit.
Unless Justice managed to line up emergency funding on Memorial Day, it’s plausible that the Greenbrier — once West Virginia’s grandest resort, with more than 500 rooms — could now be in default to Carter Bank. All told, Justice says in his complaint that he still owes Carter Bank $368 million. The bank reported total assets of $4.2 billion and a loan portfolio of $2.9 billion at the end of 2020.
It’s hard to imagine that Justice could easily find new willing lenders. Earlier this year he sued Greensill Capital — which in recent years has extended Justice more than $700 million in loans — after it too refused to keep giving Justice more money.
www.forbes.com
CHARLESTON — After news broke about a $700 million personal guarantee by Gov. Jim Justice for a loan from a now-bankrupt lender, Justice is suing another bank where he is on the hook for another $368 million — more than $1 billion in debt combined.
According to court filings, Gov. Jim Justice, his wife Cathy Justice and multiple companies owned by the Justice family filed a civil case Monday in the U.S. District Court for the Southern District of West Virginia against executives of Carter Bank and Trust, a community bank headquartered in Bassett, Va.
Justice is seeking damages of $421 million from the bank, which the governor alleges engaged in anti-competitive behavior, breach of contract, and breach of its fiduciary duties.
The lawsuit alleges that several of Justice’s companies were tricked into missing loan payments, putting those loans into default and used to force the companies into new loan terms. Justice also alleges that Carter Bank is fighting an effort by Justice to refinance the loans through a new financial institution to keep from receiving reduced interest rates.
The Justice companies, including the Greenbrier Resort, want a judge to also rule any loan modifications made after 2017 as unenforceable. Justice’s companies have approximately $368 million of outstanding loans with Carter Bank, all guaranteed by Justice himself, his wife and his son Jay, who manages Justice’s coal and agricultural businesses.
Carter and I were great personal friends. We developed that friendship over the 15 years,” Justice said. “Since that time, Carter Bank has had a lot of issues. Over the last probably three weeks, we have tried to pay off the Greenbrier loans and they basically have just stonewalled us. With all the trouble that bank is having, we just don’t seem to even go any further and that’s why we entered the lawsuit.”
This lawsuit comes on the heels of news first reported by the Wall Street Journal and confirmed by the governor Tuesday that he personally guaranteed as much as $700 million for supply-chain finance funds for one of his companies through the new-defunct Greensill Capital.
Credit Suisse Group, one of Greensill’s financiers, is seeking repayment of the loans from Greensill’s clients, including Justice’s Bluestone Resources Inc. Justice’s combined Greensill and Carter Bank loan debts comes to more than $1 billion, more than Justice’s $450 million net worth as estimated by Forbes magazine.
Justice filed suit against Greensill on March 15 shortly after the creditor went under. Justice accused Greensill of running “a high-class ponzi scheme.”
“We’ve become terrible victims, because here we are in the middle of a project and 48 hours later your banker declares bankruptcy and we find out they’re bad actors. We’re innocent as the driven snow, but here we are holding the bag.”
Justice said that he doesn’t expect he’ll have to pay back the full $700 million and that his companies’ assets are “rock solid.”
“This debt is backed by rock-solid assets,” Justice said. “We do not believe our personal guarantee will be affected in any way … however, in addition to that, we believe adamantly that we’ve been wronged and therefore that’s why we entered into a lawsuit with Greensill. We do not feel exposure at all.”
“From the standpoint of the Greenbrier or from the standpoint of Bluestone, they’re very healthy and they’re very profitable,” Justice said. “They’re moving right ahead and that’s what we’re going to do.”
A request for comment from Carter Bank was not returned.
Steven Allen Adams can be reached sadams@newsandsentinel.com.
He is also a man who has a hard time paying the bills.
Since 2016 courts have ordered Justice and his companies to pay more than $10 million to more than a dozen suppliers, workers and government entities. Over the same time, his companies also piled up $13 million-plus in tax liens. He claims to have paid off many of these. Still looming: another $60 million in potential damages in a civil case awaiting final judgment, plus up to $3 million in fines in Kentucky. And then there’s mine reclamation. By federal law, when a surface mine closes, the operator has to restore the landscape. Virginia’s Department of Mines, Minerals and Energy estimates that Justice’s coal companies face $200 million in reclamation liabilities. (Justice claims it will cost closer to $10 million.)
www.forbes.com
Below is a breakdown of 32 lawsuits in which the governor’s companies have been ordered to or agreed to pay at least $500,000.
The amounts reflect the best available information about how much a Justice company owes. In some cases, it’s unclear what those firms ultimately paid; Justice companies sometimes worked out settlements after a court order that could result in a lower amount, but the terms of the agreements were confidential.
Lawyers for the Justice companies have said they plan to appeal the $35 million judgment in the case of New London Tobacco Market, which alleged unpaid coal royalties. And an appeal could still be filed in the case of Drummond Coal Sales, which last month won a $6.9 million judgment in a coal shipping dispute.
Representatives of Justice’s companies declined to comment. Justice and his reelection campaign did not return emails, letters and phone calls seeking comment. Last week, after a ProPublica reporter sent a list of detailed questions, the governor’s campaign sent out a preemptive email to supporters, calling this line of reporting “fake news.”
www.propublica.org
Update from Forbes... seems the bank expects he pay the money back!!
In a remarkable lawsuit filed on Memorial Day, West Virginia Gov. Jim Justice — the former coal-mining billionaire — has accused his family’s longtime lender Carter Bank & Trust of orchestrating a “tortious scheme” that has thrown the solvency and future of his business empire into jeopardy.
What does Justice, his family, and companies allege? That Carter Bank, over nearly 20 years, loaned them more than $700 million, then had the gall to expect to be paid back on time.
According to Justice’s complaint, bank executives acting in bad faith purposefully “induced” his companies to default on loans (rather than continue to extend-and-pretend).
In what’s potentially the most dramatic development, Justice accuses Carter Bank of attempting to “scuttle” his attempts at renegotiating terms on millions of dollars of loans owed by his Greenbrier Hotel, which came due June 1. That’s just one day after he filed the lawsuit.
Unless Justice managed to line up emergency funding on Memorial Day, it’s plausible that the Greenbrier — once West Virginia’s grandest resort, with more than 500 rooms — could now be in default to Carter Bank. All told, Justice says in his complaint that he still owes Carter Bank $368 million. The bank reported total assets of $4.2 billion and a loan portfolio of $2.9 billion at the end of 2020.
It’s hard to imagine that Justice could easily find new willing lenders. Earlier this year he sued Greensill Capital — which in recent years has extended Justice more than $700 million in loans — after it too refused to keep giving Justice more money.
Gov. Jim Justice Sues Bank, Alleging It ‘Induced’ His Default On Hundreds Of Millions In Loans
In a remarkable lawsuit filed on Memorial Day, West Virginia Gov. Jim Justice — the former coal-mining billionaire — has accused his family’s longtime lender Carter Bank & Trust of orchestrating a “tortious scheme” that has thrown the solvency and future of his business empire into jeopardy.
www.forbes.com
CHARLESTON — After news broke about a $700 million personal guarantee by Gov. Jim Justice for a loan from a now-bankrupt lender, Justice is suing another bank where he is on the hook for another $368 million — more than $1 billion in debt combined.
According to court filings, Gov. Jim Justice, his wife Cathy Justice and multiple companies owned by the Justice family filed a civil case Monday in the U.S. District Court for the Southern District of West Virginia against executives of Carter Bank and Trust, a community bank headquartered in Bassett, Va.
Justice is seeking damages of $421 million from the bank, which the governor alleges engaged in anti-competitive behavior, breach of contract, and breach of its fiduciary duties.
The lawsuit alleges that several of Justice’s companies were tricked into missing loan payments, putting those loans into default and used to force the companies into new loan terms. Justice also alleges that Carter Bank is fighting an effort by Justice to refinance the loans through a new financial institution to keep from receiving reduced interest rates.
The Justice companies, including the Greenbrier Resort, want a judge to also rule any loan modifications made after 2017 as unenforceable. Justice’s companies have approximately $368 million of outstanding loans with Carter Bank, all guaranteed by Justice himself, his wife and his son Jay, who manages Justice’s coal and agricultural businesses.
Carter and I were great personal friends. We developed that friendship over the 15 years,” Justice said. “Since that time, Carter Bank has had a lot of issues. Over the last probably three weeks, we have tried to pay off the Greenbrier loans and they basically have just stonewalled us. With all the trouble that bank is having, we just don’t seem to even go any further and that’s why we entered the lawsuit.”
This lawsuit comes on the heels of news first reported by the Wall Street Journal and confirmed by the governor Tuesday that he personally guaranteed as much as $700 million for supply-chain finance funds for one of his companies through the new-defunct Greensill Capital.
Credit Suisse Group, one of Greensill’s financiers, is seeking repayment of the loans from Greensill’s clients, including Justice’s Bluestone Resources Inc. Justice’s combined Greensill and Carter Bank loan debts comes to more than $1 billion, more than Justice’s $450 million net worth as estimated by Forbes magazine.
Justice filed suit against Greensill on March 15 shortly after the creditor went under. Justice accused Greensill of running “a high-class ponzi scheme.”
“We’ve become terrible victims, because here we are in the middle of a project and 48 hours later your banker declares bankruptcy and we find out they’re bad actors. We’re innocent as the driven snow, but here we are holding the bag.”
Justice said that he doesn’t expect he’ll have to pay back the full $700 million and that his companies’ assets are “rock solid.”
“This debt is backed by rock-solid assets,” Justice said. “We do not believe our personal guarantee will be affected in any way … however, in addition to that, we believe adamantly that we’ve been wronged and therefore that’s why we entered into a lawsuit with Greensill. We do not feel exposure at all.”
“From the standpoint of the Greenbrier or from the standpoint of Bluestone, they’re very healthy and they’re very profitable,” Justice said. “They’re moving right ahead and that’s what we’re going to do.”
A request for comment from Carter Bank was not returned.
Steven Allen Adams can be reached sadams@newsandsentinel.com.
Justice sues another bank, on hook for another $368M
CHARLESTON — After news broke about a $700 million personal guarantee by Gov. Jim Justice for a loan from a now-bankrupt lender, Justice is suing another bank where he is on the hook for another $368 million — more than $1 billion in debt combined. According to court filings, Gov. Jim Justice...
www.newsandsentinel.com
He is also a man who has a hard time paying the bills.Justice sues another bank, on hook for another $368M
CHARLESTON — After news broke about a $700 million personal guarantee by Gov. Jim Justice for a loan from a now-bankrupt lender, Justice is suing another bank where he is on the hook for another $368 million — more than $1 billion in debt combined. According to court filings, Gov. Jim Justice...
Since 2016 courts have ordered Justice and his companies to pay more than $10 million to more than a dozen suppliers, workers and government entities. Over the same time, his companies also piled up $13 million-plus in tax liens. He claims to have paid off many of these. Still looming: another $60 million in potential damages in a civil case awaiting final judgment, plus up to $3 million in fines in Kentucky. And then there’s mine reclamation. By federal law, when a surface mine closes, the operator has to restore the landscape. Virginia’s Department of Mines, Minerals and Energy estimates that Justice’s coal companies face $200 million in reclamation liabilities. (Justice claims it will cost closer to $10 million.)
The Deadbeat Billionaire: The Inside Story Of How West Virginia Governor Jim Justice Ducks Taxes And Slow-Pays His Bills
Jim Justice is a man who has a hard time paying the bills.
www.forbes.com
Below is a breakdown of 32 lawsuits in which the governor’s companies have been ordered to or agreed to pay at least $500,000.
The amounts reflect the best available information about how much a Justice company owes. In some cases, it’s unclear what those firms ultimately paid; Justice companies sometimes worked out settlements after a court order that could result in a lower amount, but the terms of the agreements were confidential.
Lawyers for the Justice companies have said they plan to appeal the $35 million judgment in the case of New London Tobacco Market, which alleged unpaid coal royalties. And an appeal could still be filed in the case of Drummond Coal Sales, which last month won a $6.9 million judgment in a coal shipping dispute.
Representatives of Justice’s companies declined to comment. Justice and his reelection campaign did not return emails, letters and phone calls seeking comment. Last week, after a ProPublica reporter sent a list of detailed questions, the governor’s campaign sent out a preemptive email to supporters, calling this line of reporting “fake news.”
See Who’s Taken Gov. Jim Justice to Court Over Unpaid Bills
West Virginia Gov. Jim Justice, a billionaire and the state’s richest man, has a long list of debt-collection cases. In the most complete analysis of his legal record to date, ProPublica found dozens totaling more than $128 million.
www.propublica.org
Last edited:
