Chapter 8 - WHAT NORTHBRIDGE FOUND
NorthBridge’s internal review took ten weeks.
It found no single cinematic fraud.
It found a pattern.
Victor’s acquisition vehicle had overstated committed equity.
Some investor commitments were conditional but presented as firm.
He failed to disclose a side agreement giving one investor priority exit rights.
He certified collateral ownership too broadly.
He represented that Daniel supported parts of the restructuring when Daniel did not.
He used company confidential information during his competing bid without full authorization.
Most damaging:
Victor pledged future management fees from Mercer-Hale subsidiaries as loan support before those subsidiaries approved the contracts.
He was borrowing against revenue he expected to control after winning.
The bank’s credit committee concluded several representations were materially inaccurate.
NorthBridge issued a default notice.
Victor had thirty days to cure.
He could not.
Not because Daniel pushed a secret button.
May you like
Because Victor had financed an empire on documents that only worked if nobody read them after closing.
Now everyone was reading.
