In what I regard as a surprising development, at least this soon, Marriott International and coal operator Jim Justice have reached a tentative settlement regarding his purchase of The Greenbrier from CSX, despite Marriott’s contract with CSX to purchase the resort. I wrote about Justice’s purchase last week.
According toa story on page A1 in Saturday’s Washington Post, reprinted in yesterday’s (Charleston, West Virginia) Daily Mail, a Friday meeting between Justice and Marriott representatives resulted in an agreement whereby they have 30 days to negotiate a marketing deal that compensates Marriott for any business that it generates. If they can’t reach a deal, Justice will pay a $7.5 million break-up fee to Marriott.
Business Editor George Hohmann’s story in today’s Daily Mail elaborates on the details of the parties’ agreement, such as that the resort will be marketed by both Marriott and Justice not as a Marriott but under its own name, and that Justice will have access to Marriott’s national and international reservations systems.
And the Associated Press reports that today, the bankruptcy court in Richmond, Virginia granted The Greenbrier’s motion to dismiss its bankruptcy, following Justice’s testimony that he has sufficient resources to fund the operation.