Jim Justice confirms personal responsibility for Greensill loans

0
41

[ad_1]

West Virginia Gov. Jim Justice said he is personally liable for debts set up by the now bankrupt Greensill Capital, highlighting the pressure his family is facing to wind down their vast coal mines.

Unpaid loans are “an incredible burden on our family and we will have to deal with it,” he said. “It’s hard, it’s really hard.”

These were the first comments from Mr. Justice about the nearly $ 700 million loans that Wall Street Journal article topic on Monday

“We didn’t have a single earthly clue,” he said of the problems that could arise from borrowing money from Greensill.

SoftBank Group Corp.

9984 -1.59%

financial firm that filed for bankruptcy in March… He spoke at an online press conference on the government’s vaccination program.

Mr. Justice said the loans were “always personally guaranteed” and that he and his companies did nothing wrong. Borrowers provide personal guarantees for business loans to provide lenders with added convenience in the event of a default.

Greensill packed up the loans and sold them to investment funds under management

Credit Suisse Group AG

… The Swiss bank froze investment funds in March and is in talks with Mr. Justice’s Bluestone Resources Inc. and other borrowers to get the money back and heal investors, according to people familiar with the discussions.

Credit Suisse is forced to return the money quickly and named Bluestone as one of three major borrowers from Greensill funds that he identified in his recovery efforts.

Bluestone did not expect to begin repaying Greensill loans until 2023, the company said. the lawsuit was filed in March in federal court in New York, who accused Greensill of credit fraud.

On Tuesday, Mr. Justice echoed the theme, stating that Greensill is a bad actor and that he “is not going to let Greensill just do bad things.”

A Greensill spokesman declined to comment.

Mr Justice said that to his son, who is Bluestone’s chief executive officer, Greensill said everything was fine two days before the firm filed for bankruptcy. Mr. Justice’s family used the loans to rebuild Bluestone after buying it out from a Russian company in 2015, he said.

Mr. Justice said his family and companies “will continue to pay off our commitments and move forward.” He promised to ignore the issue and concentrate on his work as governor. On Tuesday, he hosted a government raffle of free trucks and cash prizes for people vaccinated against Covid-19.

Forbes removed Mr. Justice from its billionaire list this year due to Greensill’s failure. He now estimates his net worth at $ 450 million, up from $ 1.2 billion in April 2020. His wealth stems from dozens of coal companies, farms, and other businesses that he and his family control, including the famous Greenbrier Resort in White Sur Springs, West Virginia.

Write to Julie Steinberg at julie.steinberg@wsj.com

Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in print June 2, 2021 as “Governor Confirms Personal Responsibility for Greensill Debt.”

[ad_2]

Source link