Chapter 8 - THE BOARD VOTEThe reason for urgency emerged three days later.
Whitaker Medical Systems had a board meeting scheduled Friday.
My father wanted approval for a refinancing and restructuring package.
The company had taken on substantial debt building a new manufacturing facility.
The facility was eighteen months late.
Costs had climbed from $38 million to $61 million.
I knew it was over budget.
I did not know how badly.
The new financing would keep the company liquid.
But it came with conditions.
My father proposed transferring certain profitable service contracts to a separate entity partially owned by him and two longtime executives.
I had objected when I first saw the outline.
“Why move assets out of the operating company?”
Dad called it “risk segmentation.”
One independent director called it “self-dealing unless restructured.”
The board vote was going to be close.
My twelve-percent ownership carried voting rights large enough to matter in shareholder approvals related to parts of the transaction.
Suddenly the hospital folder made sense.
Not completely.
Enough.
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They did not need my shares because Kirk was fatherless.
They needed my vote gone before Friday.
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