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Chapter 4 - The Immediate Default

Daniel grabbed the documents, tearing through the annexes with frantic fingers.

"This note has a thirty-day cure period!" Daniel yelled, spit flying from his lips. "I have fourteen days to refinance with Chase or Morgan Stanley!"

"You had a cure period," Evelyn corrected, pulling a second, thinner folder from her portfolio. "Until thirty-six hours ago, when you authorized an unauthorized dividend payout of five million dollars to an offshore account in the Cayman Islands registered under Vanessa Miller’s maiden name."

Vanessa gasped, shrinking back into the leather chair.

Daniel froze, his hands trembling over the bond paper.

"Paragraph twelve, subsection B," Evelyn recited without looking down. "Any dissipation of corporate cash reserves to non-arm’s-length parties without prior unanimous board approval constitutes an immediate event of willful default. There is no cure period. No grace."

Grant buried his head in his arms on the stained table. "You stole from the operating account for her, Daniel? While our suppliers are on sixty-day holds?"

"Shut up, Grant!" Daniel shrieked, losing every shred of his polished executive veneer.

"As the sole holder of the senior secured debentures," Evelyn announced, her voice filling the vast dining room with unquestioned authority, "I executed the default acceleration at four o'clock this afternoon. The Delaware Court of Chancery accepted the receivership petition at five-thirty."

She turned to the family accountant.

"Mr. Bradley. Did you check your corporate email before you arrived tonight?"

The accountant fumbled in his jacket, pulling out his vibrating smartphone. His thumbs moved frantically across the screen.

When he looked up, his face was the color of chalk.

"The trading on Whitmore Holdings stock has been suspended," Bradley whispered to the silent room. "The New York Stock Exchange was served with an involuntary receivership order. The board has been removed."

"Who is the receiver?" Caroline cried out, her aristocratic voice trembling with panic.

"The court-appointed receiver," Bradley read from his screen, "is Harrison & Vance LLP, acting on behalf of the principal creditor, St. Jude Holdings."

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Bradley looked directly at Evelyn with a mixture of terror and awe.

"Evelyn holds ninety-two percent of the voting equity through senior debt conversion. The company... the company belongs to her."

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