Bank goes all in, chasing $300M debt from Justice and Co.

January 26, 2024
1 min read

In a statement to stockholders filed with the U.S. Securities and Exchange Commission, Carter Bank has announced plans to aggressively pursue the collection of $300 million in debt owed by Gov. Jim Justice and his family companies. The bank wants to cash in on defaulted loans that were personally guaranteed by the Justice family and applied to various branches of their business network, including the Greenbrier Hotel Corporation. A circuit judge in Virginia recently rejected the Justice family’s arguments against the debt claim, stating that they had failed to provide an adequate defense. However, the Justices have filed motions to set aside the confessed judgments in an attempt to offer a more detailed defense.

Carter Bank filed confessions of judgment in April totaling $302 million, citing the personal guarantees by the Justices. Confessions of judgment are written and signed agreements that accept liability in instances of default, allowing the note to be presented to the court without notifying the debtor or having a hearing. The Justice companies argue that enforcing the confessed judgments is a radical step and claim that Carter Bank engaged in unfair business practices.

Although the federal case filed by the Justice entities against Carter Bank is still active, the statement to shareholders specified that it is separate from the Circuit Court proceeding. Bank officials referred to the federal complaint as containing false and misleading claims that the bank will vigorously defend. The bank’s statement also indicated that the timing of the debt repayment is currently uncertain.

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