Chapter 2 - The Call Richard Never Admitted Making)
Caroline almost ignored the call.
Richard had not phoned her after midnight since she was nineteen.
When she answered, there was no greeting.
“I need a number.”
She sat up in bed.
“What number?”
“How much capital can your firm place quickly?”
Caroline switched on her bedside lamp.
“What happened?”
“Nothing happened.”
“Then why are you calling me at one in the morning?”
Richard exhaled.
“A lender pulled out of a position.”
“Which one?”
“That’s confidential.”
“You called me.”
“I called because you pretend to know investors.”
Caroline almost laughed.
“What do you need?”
“Short-term liquidity.”
“How much?”
There was a pause.
“Six million.”
“Six?”
“Maybe seven.”
Caroline’s eyes narrowed.
“Six point four?”
Silence.
There it was.
Richard recovered quickly.
“If you know the amount, why are you wasting my time asking?”
“Because I wanted to know whether you would tell me the truth.”
“I’m not asking for a lecture.”
“What security are you offering?”
“Westbridge.”
“Already heavily encumbered.”
Another silence.
Richard sounded different now.
Less like a father scolding a disappointing daughter.
More like a borrower negotiating with someone he desperately needed.
“You have investors or not?”
“I might.”
“I need terms by Friday.”
“Send me the financials.”
“No.”
Caroline almost thought she misheard him.
“No?”
“You bring me someone willing to fund it, then I’ll provide what they need.”
“That isn’t how this works.”
“It’s how I work.”
“That may explain your current problem.”
Richard’s voice exploded.
“Do not get smart with me.”
Caroline waited.
Years earlier, that tone would have made her apologize.
Now she merely said, “Goodnight, Dad.”
“Wait.”
Caroline said nothing.
Richard lowered his voice.
“Friday.”
“Financials first.”
“I’ll send a package.”
“All entities connected to Westbridge.”
“You don’t need every entity.”
“Then find someone else.”
Richard cursed.
Caroline remained silent.
Finally he said, “Fine.”
The documents arrived the next afternoon.
They were incomplete.
Caroline knew before Evan even reviewed them.
The liabilities schedule omitted two subsidiaries mentioned in public filings.
A land-holding entity called HGD Land Seven had disappeared entirely.
So had an LLC called Cardinal Municipal Partners.
Caroline called Evan.
“He’s hiding something.”
“Several things.”
“What did you find?”
“Cardinal Municipal received eleven million from Hayes Development twenty months ago.”
“For what?”
“Consulting.”
Caroline laughed without humor.
“Eleven million dollars in consulting?”
“Apparently they give very good advice.”
“Who owns it?”
“Layered LLCs. We’re tracing.”
“And Land Seven?”
“That gets stranger.”
“How?”
“It purchased fourteen acres adjoining Westbridge.”
“That sounds normal.”
“Then transferred them three months later.”
“To whom?”
“A trust.”
“What trust?”
“Still working.”
Caroline stood at her kitchen island.
“Richard wants money by Friday.”
“Are you considering giving it to him?”
“No.”
“Good.”
“I’m considering buying whoever is about to crush him.”
Evan became quiet.
“That’s a different sentence.”
“Which lender holds the six-point-four-million cure?”
“North Carolina Commerce Bank controls the senior facility.”
“Would they sell?”
“Not under normal circumstances.”
“Are these normal circumstances?”
“No.”
“Then ask.”
Evan hesitated.
“Caroline.”
“What?”
“If you purchase a distressed position tied to your father’s business, your relationship with him is over.”
Caroline looked at the financial package Richard had sent her.
It contained a cover note.
Try not to waste my time.
She folded the note.
“My relationship with him has survived twenty years of him trying to end it.”
“That isn’t what I mean.”
“I know.”
Evan sighed.
“I’ll make the inquiry.”
North Carolina Commerce Bank initially refused.
Then something changed.
A regulator had raised questions about concentration exposure.
The bank wanted to reduce several construction loans before quarter-end.
Hayes Development was suddenly negotiable.
Not the entire Westbridge financing.
Only one distressed tranche.
The outstanding balance associated with Richard’s cure obligation was slightly above $6.4 million.
Caroline created an investment vehicle called CH Meridian Partners.
No Hayes name.
No connection that Richard would recognize.
Negotiations began.
Meanwhile, Richard continued calling.
“How’s your investor search?”
“Working on it.”
“What does that mean?”
“It means I’m working on it.”
“I need certainty.”
“You should have thought about certainty before signing floating-rate bridge debt.”
“Don’t talk to me like you understand development.”
“Don’t talk to me like I haven’t read your loan documents.”
He hung up.
Three days later he called again.
“Your mother says you’re coming to Charlotte next month.”
“For Madison’s birthday.”
“Bring someone useful.”
Caroline frowned.
“What does that mean?”
“A banker. Investor. Someone who matters.”
“I thought family dinners were for family.”
“Don’t be childish.”
He ended the call.
Caroline stared at her phone.
Then Evan emailed.
Subject: Meridian position approved.
The acquisition would close in nine business days.
Caroline reread the message twice.
She was about to become one of her father’s creditors.
Then her phone rang again.
May you like
It was Diane.
Her mother was crying.
