This piece is a press release about the vaunted Greenbrier Resort in White Sulphur Springs WV having filed for Chapter 11 bankruptcy and preparing to be purchased by Marriott.
The press release reads in part:
Also, GHC (parent of the resort) announced that it has signed an Asset Purchase Agreement with Marriott Hotel Services, Inc. for the sale of The Greenbrier, subject to substantial conditions.
"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.
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. Marriott would assume management responsibility for the resort as soon as the transaction is closed.
The Chapter 11 petition was submitted to the United States Bankruptcy Court for the Eastern District of Virginia in Richmond.
The Greenbrier Hotel Corporation is a wholly owned subsidiary of The Greenbrier Resort and Management Corporation, which is wholly owned by CSX Corporation.