Chapter 16 - THE BUSINESS PROBLEMMercer Hospitality Design had not failed.
It was strained.
Important difference.
Revenue:
About $5.6 million the previous year.
Profitable historically.
Recent twelve-month loss:
$480,000.
Main causes:
Las Vegas project write-off.
Two client defaults.
Hiring expansion too early.
A personally guaranteed credit facility nearing covenant breach.
Julian needed about $600,000 in fresh liquidity to stabilize operations.
Victoria gave him $350,000.
He expected another $250,000 from a refinancing tied indirectly to the lake property.
Not a mortgage on the trust house itself.
He knew he could not do that easily.
Instead he planned something subtler.
If he could establish an enforceable marital reimbursement/equitable interest, he hoped to use the eventual settlement value as part of his personal net-worth statement to support the business line.
Not immediate collateral.
Prospective liquidity.
Bankers count likely assets carefully.
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Julian wanted the lake house dispute to become leverage in divorce.
He assumed I would settle rather than fight.
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