Chapter 11 - The board turns on me too
I expected the board to fire Julian.
They suspended him immediately.
Criminal arrest made that easy.
Then they reviewed me.
That angered me.
Then I realized it was necessary.
Had I failed fiduciary duties?
Had I let grief compromise oversight?
Had I signed documents without sufficient review?
Yes.
Was I responsible for kidnapping?
No.
Was I responsible for Julian’s concealment?
No.
But Carter Holdings could not fix itself by saying:
Arthur was sad.
Independent special committee hired outside counsel.
They reviewed:
Five years of board minutes.
Acquisitions.
Delegations.
Lender communications.
Executive-health representations.
Related compensation.
Then interim leadership.
I wanted to remain CEO.
Committee disagreed temporarily.
Not because I was incompetent.
Because:
My son had just been recovered.
My CFO was under arrest.
I was a witness.
Media outside gates.
I had not slept.
Board appointed:
COO Natalie Brooks interim CEO for sixty days.
I remained executive chair? Better avoid control conflict. I remained director and major shareholder but stepped back from operations voluntarily.
That hurt.
Then North Meridian transaction canceled.
No financing close.
Could that trigger liquidity crisis?
Yes.
Carter Holdings still needed capital.
Banks demanded plan.
Natalie arranged:
$120 million revolver extension.
Asset sale review.
Capex reduction.
No instant collapse.
Then lenders asked:
“Were prior certifications fraudulent?”
Some Julian had signed.
Some I had.
Investigation.
No lender accelerated immediately.
Reservation of rights.
Reporting.
Then employees.
Rumors:
Founder’s son found alive in wall.
CFO arrested.
Company being seized.
We issued careful statement confirming:
Leo recovered alive.
Julian suspended.
No comment on criminal case.
Business operations continue.
No sensational details.
May you like
Leo was ten.
He did not need to become a brand crisis.
