Chapter 8 - Victor Finally Told James Why He Couldn’t Admit the Debt
James met his father alone.
No lawyers for the first hour.
Victor looked exhausted.
James placed the lender notice on the table.
“You could have told me.”
Victor gave a bitter laugh.
“And say what? The man who taught you never to borrow against control of the company borrowed against control of the company?”
“Yes.”
Victor looked away.
James continued.
“You’ve spent my whole life telling me bad numbers don’t improve because you refuse to look at them.”
“I know.”
“Then you hid six-point-seven million dollars.”
“Personal debt.”
“Secured by shares that affect all of us.”
Victor nodded.
There.
Then the deeper reason.
After James became CEO, Victor struggled with irrelevance.
For thirty years everyone called:
Victor.
Bank problem?
Victor.
Acquisition?
Victor.
Labor strike?
Victor.
Then James took over.
Victor remained respected.
But no longer necessary.
The Baja investment became his attempt to prove he still had instincts nobody else possessed.
When it failed, admitting it meant admitting:
James was now better positioned to solve the problem.
Victor hated that.
Then the proxy.
He told himself he was not really bypassing James.
He was:
accelerating.
The board would approve eventually.
Counsel disagreed.
Victor continued.
James looked at him.
“You didn’t need the marina sale.”
“I needed liquidity.”
“Not necessarily from Cape Arden.”
Victor said nothing.
There were other options.
Sell part of Victor’s personal holdings voluntarily.
Restructure the loan.
Bring in a family buyer.
Accept dilution.
All painful.
None impossible.
Victor chose the option that moved pain somewhere else.
Onto the company.
Onto James.
May you like
Then eventually onto a yacht deck where his grandson chased the key to the secret.
---
