Greenbrier Hotel's Chapter 11 bankruptcy case set to be dismissed

By Jennifer Lanning Drey

Portland, Ore., May 19 - Greenbrier Hotel Corp.'s motion to dismiss its Chapter 11 bankruptcy case was granted Tuesday by the U.S. Bankruptcy Court for the Eastern District of Virginia with an order expected soon, according to a source familiar with the case.

As previously reported, when requesting the dismissal, Greenbrier said it filed for bankruptcy solely to complete a sale or restructuring transaction that would ensure Greenbrier continued to operate as a going concern.

Although it originally planned to sell Greenbrier to Marriott under a bankruptcy sale process, the company said the property was sold to a new entity formed by James C. Justice II, James C. Justice III and Jillean L. Justice through a stock transaction between former parent company CSX Corp., its financial adviser and the Justices.

Greenbrier said it was not a party to the stock purchase agreement.

Greenbrier said its new owner will make sure that the company satisfies its existing third-party debt, so "the bankruptcy cases no longer serve any necessary restructuring purpose."

In addition, the new owners have agreed to pay the break-up fee and expense reimbursement owed to Marriott.

The White Sulphur Springs, W.Va.-based Greenbrier Hotel Corp. is a wholly owned subsidiary of the Greenbrier Resort and Management Corp. The company filed for bankruptcy on March 19, and its Chapter 11 case number is 09-31703.

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