Justice guaranteed a $ 850 million loan for his family’s private company; he says the group that lent money to his company was a “bad actor” | news

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The former investment firm is “a bad, bad player,” Gov. Jim Justice said a day after a detailed report on how the corporation he and his family own owes the firm’s investors nearly $ 700 million.

Wall Street Magazine A report was released on Sunday that Swiss financial services firm Credit Suisse Group is working with Justice family-owned Bluestone Resources Inc. to recoup Credit Suisse’s investment in Greensill Capital.

Greensill, headquartered in the United Kingdom, filed for bankruptcy after it lost the insurance coverage that backed its loans, The Journal reported.

Justice has not read The Journal’s report, he said during his COVID-19 press conference on Tuesday, when at least three local news outlets asked the governor about his non-government deals.

“I think you have to remember this: we did nothing wrong,” Justice said. Greensill is a bad actor.

Justice said he “personally guaranteed loans” from Greensill, which means the governor is personally responsible for paying off the loans from the now defunct company.

Greensill lent Bluestone $ 850 million as part of a deal the companies struck in May 2018. according to the claim Justice and his family have filed a lawsuit against the company. The magazine estimated Justice’s net worth at $ 450 million in Sunday’s report.

“We won’t let Greensill just do bad things,” Justice said Tuesday.

Governor Justice, his wife Katy, their son and Bluestone Resources CEO James K. Justice III (known as Jay) are named plaintiffs in claim, along with other Justice family businesses, Bluestone Coal Sales Corp. and Blackstone Energy Ltd.

Bluestone Resources is a Delaware corporation headquartered in Roanoke, Virginia.

In the claimThe judges accuse Greensill of violating their 2018 contract, fraud, breach of fiduciary duties, and conspiracy under a scheme against justice companies to gain control of Bluestone Resources for sale to Credit Suisse.

As of Tuesday, according to court records, Justice’s family provided no evidence that they were serving Greensill in the case.

US District Judge Jesse Furman issued an order on May 24 that judges must submit evidence by May 27 that Greensill was notified of the incident. claim

Furman said that if his office does not receive messages from judges and Bluestone by June 21, he will close the case

As of Tuesday, no documents have been submitted in the case since May 26, when, according to court records, the judges’ lawyers received Furman’s order.

Governor Justice said Tuesday that he began dealing with Greensill in 2018, just over three years after buying its coal companies from Russia’s Mechel Bluestone for $ 5 million in February 2015 following the sale of the companies to a Russian company for $ 436 million. … in 2009.

He accused the Russian company of leaving Bluestone “nothing,” owing millions in taxes, and opening up obligations to unions and company suppliers.

The governor praised Jay Justice for the work he had done as CEO of the family-owned company, saying they knew it would take “hundreds and hundreds of millions of dollars to rebuild.”

“We’ve taken full control and are rebuilding Bluestone,” the governor said. “Greensill made loans and then Greensill, out of nowhere, out of nowhere, from whatever we might know, went bankrupt.

“This is an incredible burden on our family and we will have to deal with it.”

In a Bloomberg review In March, columnist Matt Levine described Bluestone’s relationship with Greensill as “a payday loan for a job that Bluestone has not yet applied for,” as Greensill provided Bluestone with money that would be paid out of prospective jobs and sales, sometimes with businesses with which Bluestone did not have a working relationship.

Justice, who has been criticized for not ditching his companies since the residents of West Virginia first elected him in 2016, met with Greensill representatives in West Virginia, usually in White Sulfur Springs, where the family’s Greenbrier resort is located. Justice.

The Governor and Jay Justice first met with Greensill representatives, including Vice Chairman Roland Hartley-Urquhart, at The Greenbrier in May 2018. claim filed in federal court for the Southern District of New York in March. This meeting took place about a year and a half after Jim Justice’s first presidential term.

Through claim, Justice attorneys call him JCJ II and Jay Justice JCJ III.

in claimJustice said he had “frequent phone calls” with Hartley-Urquhart between March 2020 and September 2020, when the duo agreed to provide Greensill with funding for Bluestone during the COVID-19 pandemic.

The Governor personally met with Hartley-Urquhart in September 2020 and most recently on February 20 this year in White Sulfur Springs, according to the lawsuit. Justice had been on the phone with Hartley-Urquhart shortly before, on March 1, when the governor learned that Greensill Capital had collapsed and, according to the lawsuit, Hartley-Urquhart was leaving the company.

In the same months that he negotiated with Greensill, Justice fought a lawsuit in the West Virginia Supreme Court alleging that he had violated the state constitution by not residing in Charleston and managing from his White Sulfur Springs home, but this actively participating in his affairs. family business.

In December, the West Virginia Supreme Court made a decision speaking, where the state constitution says that an official must “reside” somewhere after being elected, that person must make that place his “home base”.

February Justice settled a case two years ago agreeing to live in Charleston and pay $ 65,000 to Isaac Sponaugle, an attorney for Pendleton County and a former member of the West Virginia House of Delegates who was prosecuting Justice against Justice as a private individual.

Speaking Tuesday at the Governor’s Office at the Capitol Complex, the Governor said in terms of his family’s private business, they “will continue to do exactly what we have done in the past,” and redoubled their attention by stating that Greensill was a bad actor.

“This will all come to light as we move forward,” Justice said. “This is terribly unfortunate and this is what our family has to deal with. I know that from the point of view of those who work in the media, they like to throw stones and all that. I’m going to become governor. I hate to say this, but I’m not going to pay attention to it. We can handle it and hopefully the end result will be better. I hope we will be happy with the end result. “

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