Chapter 4 - Margin Call
By 8:30 a.m. the following morning, the financial district was already buzzing with rumors.
Preston Vale walked into his corner office at Vale Harbor Capital smelling faintly of breath mints and expensive cologne, attempting to mask a hangover. He hadn't slept. The sting of Marcus Reed’s revelation at the country club had burned into his pride like acid.
“Where is my morning briefing?” Preston barked at his administrative assistant.
Instead of his assistant, a woman in a sharp charcoal suit stepped out of the conference room. She was holding a tablet and an embossed legal folder.
“Mr. Vale?” Maya Lin asked coolly.
“Who the hell are you? Get out of my office.”
“I’m Maya Lin, Chief Operating Officer of Reed Meridian Holdings. And as of eight o’clock this morning, the authorized representative for Apex Ridge Syndicate.”
Preston blinked, his arrogance faltering. “Apex? What does Reed Meridian have to do with Apex?”
“We bought their distressed asset portfolio last month,” Maya said, walking across the plush wool carpet and dropping the thick folder onto his glass desk. “Including your seventy-million-dollar waterfront bridge facility.”
Preston laughed, though the sound was shrill and hollow. “So Marcus bought my debt? Tell him thanks. He’s going to make seven percent interest on my success. The waterfront project breaks ground next month.”
“The waterfront project has been cancelled,” Maya replied evenly.
Preston stopped cold. “What did you say?”
“The municipal council received an anonymous environmental audit two hours ago regarding soil contamination on your site—contamination your firm concealed during the acquisition phase.”
“That’s proprietary! That's confidential!” Preston yelled, veins bulging along his neck.
“It’s public fraud, Mr. Vale,” Maya continued without blinking. “Which triggers Covenant 9-B of your bridge loan agreement. Immediate default. Apex Ridge hereby issues a formal margin call. You have twenty-four hours to deposit twenty-two million dollars in liquid collateral into our escrow account, or we initiate foreclosure on all pledged assets.”
“Twenty-two million?!” Preston’s voice cracked. “Nobody has that kind of liquidity on twenty-four hours’ notice!”
May you like
“Mr. Marcus Reed does,” Maya said smoothly as she turned toward the door. “Have a productive morning, Preston.”
***