West Virginia Governor Jim Justice, who is at the forefront of cutting benefits from the unemployed in his state, is personally liable for nearly $¾ billion in loans from the collapsed dodgy non-bank loan company Greensill Capital.

It could not happen to a nicer guy:

West Virginia Gov. Jim Justice is personally on the hook for nearly $700 million in loans his coal companies took out from now-defunct Greensill Capital, according to people familiar with the loans and documents described to The Wall Street Journal.

Mr. Justice’s personal guarantee of the loans, which hasn’t been reported, puts financial pressure on the popular Republican governor. He is also dealing with unrelated lawsuits alleging parts of his sprawling network of coal companies breached payment contracts or failed to deliver coal.

Greensill packaged the loans and sold them to investment funds managed by Credit Suisse Group and Greensill ran $10 billion in supply-chain finance funds that extended financing to a range of borrowers.

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[Governor Justice’s company] Bluestone hadn’t expected to begin repaying the Greensill loans until 2023 at the earliest, it said in a lawsuit brought in March in a New York federal court alleging Greensill committed fraud in its lending practices.

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Greensill was a once-hot private finance firm whose bankers said could have been worth $40 billion in a potential initial public offering. It attracted investment from SoftBank Group Corp. before collapsing into bankruptcy in March when it lost a key type of insurance that backed up its loans.

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Credit Suisse in a recent notice to investors said Bluestone owes nearly $700 million in loans.

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The guarantees were provided by Mr. Justice as well as his wife and covered unlimited amounts, some of the people familiar with the loans said. Mr. Justice’s son and Bluestone’s chief executive, James C. Justice III, guaranteed the loans up to a certain limit, one of the people said, though that figure couldn’t be learned. All three are listed as plaintiffs in the lawsuit against Greensill.

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Forbes this year dropped Mr. Justice from its billionaires list, owing to Greensill’s failure. It now pegs his net worth at $450 million, down from $1.2 billion in April 2020. His wealth stems from dozens of coal companies, farms and other businesses he and his family oversee, including the famed Greenbrier resort in White Sulphur Springs, W.Va.

$450 million – $700 million = -$250 million dollars.

He’s rich, so he is not going to have to pay it all off, rich people never pay their bills, but this is going to take a significant bite out of his wallet.

I would also note that Greensill’s model was to make to make supply chain loans, where suppliers would get the cash while their customers dragged their feet on paying them.

Their special sauce was in using complex financial instruments to mask the risk involved in these transactions, which allowed them to offer lower rates.

If you were into Greensill for 700 Extra Large, it means that you company was already in serious trouble.

Here’s hoping that Justice will need to get an honest job after he leaves the Governor’s mansion.