Chapter 14 - The Debt
The twenty-six-million-dollar debt changed everything.
The forensic accountants searched Daniel’s private financial records.
What they discovered was worse.
Daniel had made a series of aggressive personal investments.
Luxury developments.
Private technology companies.
A speculative resort project in the Caribbean.
Several failed.
Instead of admitting the losses, Daniel borrowed more.
Then more again.
Eventually, legitimate banks stopped lending.
That was when private lenders appeared.
The interest rates were brutal.
The repayment deadlines were worse.
Rebecca stared at the report.
“He risked everything.”
The accountant nodded.
“He used his company shares as collateral.”
Rebecca frowned.
“But the trust shares prevented him from pledging control.”
“Exactly.”
Caroline understood.
“That’s why he needed Rebecca’s voting rights.”
“Yes.”
Rebecca looked toward the Phoenix agreement.
If Daniel obtained her votes through the forged settlement, he could push through the sale.
He would receive enough cash to pay the lenders.
Everyone else would inherit the damage.
Adam entered the room.
“Who loaned him the money?”
The accountant hesitated.
“A company called Northstar Capital Partners.”
Rebecca had never heard of it.
Caroline had.
“It’s not traditional private equity.”
“What is it?”
“A debt acquisition firm.”
“Meaning?”
“They buy distressed obligations.”
Adam frowned.
“So if Dad didn’t pay?”
“They could seize pledged assets.”
Rebecca looked at the report.
“Except Daniel pledged things he didn’t fully own.”
“Yes.”
“That means they may come after the company.”
“They already are.”
Caroline placed a letter on the table.
Northstar had demanded immediate repayment.
Twenty-nine million dollars including penalties.
Rebecca’s stomach tightened.
“Can they touch Carter Development?”
“Not if the pledges are fraudulent.”
“But proving that takes time.”
“Yes.”
Adam sat down.
“So Dad didn’t just risk himself.”
Rebecca looked at him.
“No.”
“He risked everyone.”
That afternoon, Northstar representatives requested a meeting.
Rebecca agreed.
Three attorneys arrived.
Their lead counsel, James Colter, placed documents on the table.
“We financed Mr. Carter based on sworn representations concerning his control.”
Rebecca slid the forged settlement toward him.
“Your control documents were fraudulent.”
James read it.
His expression changed.
“Our legal team received a notarized version.”
“The notary is cooperating with investigators.”
James looked toward Caroline.
“That creates serious issues.”
“For Daniel.”
Caroline replied.
James leaned back.
“If your allegations are accurate.”
“They are.”
James gathered his papers.
“Then Northstar may have claims against Mr. Carter personally.”
Rebecca watched him.
“And Carter Development?”
“That depends.”
“On what?”
“Whether your board chooses to honor any portion of the debt.”
Rebecca’s eyes narrowed.
“Why would we?”
James looked at her.
“Because litigation could freeze transactions for months.”
It was a threat disguised as a business proposal.
Rebecca understood immediately.
“You want money to go away.”
“I want a commercial resolution.”
Rebecca stood.
“No.”
James raised an eyebrow.
“No negotiation?”
“We will pay valid company debts.”
“We will not pay Daniel’s personal gambling losses.”
James closed his folder.
“Then this becomes unpleasant.”
Rebecca met his eyes.
“It already is.”
After the meeting, Caroline remained quiet.
Rebecca looked at her.
“What?”
“They may file an emergency claim.”
“Let them.”
“That could scare investors.”
“They’re already scared.”
Rebecca looked toward the city.
Fear had kept her silent for years.
Fear of divorce.
Fear of scandal.
Fear of disrupting Adam’s life.
Fear of admitting her marriage was empty.
Daniel had built much of his power inside that fear.
Rebecca turned toward Caroline.
“We stop negotiating with threats.”
Caroline nodded.
Then her phone rang.
She answered.
Her expression changed immediately.
“What happened?”
Rebecca asked.
Caroline slowly lowered the phone.
“Daniel filed for divorce.”
Rebecca stared at her.
Then almost smiled.
“Finally.”
Caroline did not smile back.
“That isn’t the problem.”
Rebecca’s expression changed.
“What is?”
“He claims you committed financial abuse.”
Rebecca blinked.
“And he is asking the court to freeze the Whitmore Family Trust.”
The room went silent.
May you like
Daniel had opened another front.
But this time, Rebecca was ready.
