WHITE SULPHUR SPRINGS — CSX has decided to send its West Virginia-based Greenbrier Hotel Corporation into Chapter 11 bankruptcy.
Greenbrier Hotel Corp., a subsidiary of the railroad CSX, is the owner of The Greenbrier resort in White Sulphur Springs. As part of the filing, CSX will continue to finance the operations of the resort in the near term. As part of the filing, GHC asked for approval of financing from CSX Corporation to keep the hotel open until a sale to Marriott Hotel Services, Inc.
“A sale to Marriott would be a great outcome for everyone associated with The Greenbrier,” said Michael Gordon, president and managing director of the resort, in the release.
According to a PR Newswire press release, the agreement with Marriott contemplates that CSX Corporation would provide $50 million, through an affiliate, to be used in the operation of the resort after completion of the sale. These funds would be paid over a two-year period following the closing of the transaction. In turn, Marriott would pay GHC between $60 million and $130 million within approximately seven years, with the actual amount depending on the timing of the payment and The Greenbrier s financial performance.
The transaction, which is not expected to be completed until later in the year, is contingent on the ability of The Greenbrier and its unions to negotiate labor contracts that are satisfactory to Marriott as The Greenbrier competes in a very difficult market environment. It is also subject to a court-supervised auction process in which other qualified purchasers will have an opportunity to bid on the resort.