A federal judge has approved a proposed sale of a helicopter one of Gov. Jim Justice’s coal companies surrendered amid a failure to repay debt stemming from a $13 million judgment.
U.S. District Judge Robert Ballou — in the District Court for the Western District of Virginia on Thursday — approved the sale proposed by two of the Bluestone Resources Inc.’s creditors to a foreign construction technology firm.
The slated buyer is India-based B G Shirke Construction Technology Private Limited. The court approved the sale of the 2009 Bell helicopter to Shirke conditioned upon certification by an escrow agent, Oklahoma-based McAfee & Taft, that it has received the full purchase price.
The two creditors, Caroleng Investments Limited and 1st Source Bank, had proposed the court approve a final sale order for the helicopter to be bought “as is” for $1.4 million, with a $100,000 deposit in escrow.
Caroleng, a British Virgin Islands firm and the $13 million judgment awardee, and South Bend, Indiana-based 1st Source told the U.S. District Court for the Western District of Virginia they executed an aircraft purchase agreement May 20 with the buyer.
The agreement calls for the helicopter to be delivered to Shirke by June 15 with a free-and-clear title, and with Shirke depositing a further $1.3 million into escrow in anticipation of a closing.
Ballou’s Thursday order bars Bluestone from claiming any right, title, interest in or lien upon the helicopter.
A six-seat chopper with ‘Corporate Interior’
The aircraft includes a “Corporate Interior” with standard six-place club seating in blue leather with a soundproofing kit, according to the purchase agreement.
The 2009 Bell helicopter had been listed publicly for sale at Controller.com. The page previously said those interested must call for the price of the helicopter, which is listed as located in Colleyville, Texas, the home base of the broker where a federal judge on March 1 ordered Bluestone to surrender the helicopter.
In June 2021, a Delaware federal court ordered Bluestone to immediately pay roughly $10.1 million, plus 9% interest from May 2020 until the sum is paid, to Caroleng, which had asked the Delaware court in December 2020 to enforce an arbitration award decided earlier that year.
Caroleng said Bluestone didn’t meet its obligations under a 2015 agreement under which it sold coal-producing property and assets to Bluestone in exchange for a cash payment, future royalty payments and, in the event that Bluestone resold any of the transferred property or assets to a third party, contingent payments.
Caroleng said Bluestone sold some of the equipment and property in January 2017, 11 days after Justice became governor, that Bluestone had bought from Caroleng, triggering Bluestone obligations under the 2015 agreement.
1st Source sued Bluestone in February for over $4.5 million, alleging breach of contract for money loaned to the company per promissory notes and other loan documents. 1st Source reported in its complaint that it’s looking to seize 45 property items from Bluestone it says were used as collateral to secure unpaid loans.
Justice’s family and business finances have taken major hits in recent months as he mounts a 2024 U.S. Senate run on the Republican ticket.
In January, a Virginia circuit court judge formally denied attempts by Justice, his family and businesses to set aside documents admitting over $300 million of debt owed to Carter Bank & Trust, a Virginia bank trying to collect that debt.
Carter Bank has planned but held off on holding an auction of Greenbrier Sporting Club companies that loom large in Justice’s business empire to collect on debt they say they’re owed through a 2015 trust deed totaling $250 million.
The Greenbrier Sporting Club is a private equity club that offers memberships to those who buy real estate at The Greenbrier resort, which is owned by Justice, who pledged that he would put his children in charge of his family’s business operations upon taking office in 2017. The governor has suggested in some court proceedings and interviews since taking office that he remains familiar with his coal companies’ operations.
Seven tax liens issued by the West Virginia Tax Department covering a three-month period from June 30 through Oct. 31, 2023, against the Justice family-controlled Greenbrier Hotel Corp. totaled $3,521,047.
During an election night press conference, Justice claimed his businesses’ obligations were being met despite there being “times when you probably get a little behind.”
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