Chapter 4 The Newells' Debt and the Jacoby Downfall

Jacoby Realty began running into trouble half a month later.

First, the company fell behind on payments for its Westside development project, prompting several contractors to gather outside its headquarters and demand their money. Then, a bank called in a bridge loan ahead of schedule.

After that, the prospective partners for the agricultural and cultural tourism project started to reconsider their decision. Now, no one was willing to be the first to sign the papers.

Walter grew anxious, so he pinned all his hopes on Ivan.

In Walter's eyes, Ivan was the son who most resembled him. He knew how to entertain clients, speak smoothly, navigate all kinds of drinking parties, and make every elder feel thoroughly pleased with himself.

More importantly, Ivan had married Avery Newell.

The Newell family had once been one of the city's wealthiest families, having built its fortune in mining and import-export businesses. Although they had kept a lower profile in recent years, their financial foundations still commanded respect among the older generation.

Walter had always believed that Jacoby Realty would have someone to bail it out if they were ever in hot water since the Newells were Ivan's in-laws.

To his dismay, the Newells had excuse after excuse at the ready when the time came for their financial support.

Jacoby Realty submitted documents listing the Newell family as a potential strategic investor to prove that it had external financial backing. When the risk management department launched an investigation, they uncovered a mountain of problems related to this matter.

Apparently, several Newell companies had been classified as high-risk entities two years earlier, and nearly all their assets had been pledged as collateral.

Megan was sitting across from me as I reviewed the documents, helping Colton build something out of his blocks. She looked up and asked, "Does the Newell family really have no money left?"

I pushed the report toward her. "They're even more deeply in debt than Jacoby Realty."

She flipped through several pages, her expression changing. "Does Ivan know about this?"

I pointed to several entries detailing the movement of funds. "Not only does he know, but he's also been helping the Newells pay off their debts thus far."

Megan fell silent.

I continued reading.

Jacoby Realty had three supply chain companies that were supposedly responsible for procuring equipment and materials for the initial stages of the agricultural and cultural tourism project.

Nevertheless, the money never went toward purchasing equipment or building warehouses after the funds were disbursed. Instead, it passed through several consulting firms before eventually landing in accounts used to pay off the Newell family's debts.

Over three years, the amount had come to nearly 1.2 billion dollars—and that was only what the preliminary investigation had uncovered.

I closed the file, a cold weight pressing against my chest.

Rosalie had endured far too much over the years for the sake of the Jacoby family. Yet, her husband treated a child who wasn't even his own as a treasure, while that very son bled the family fortune dry.

She had spent all these years believing she was indebted to the Jacoby family. When in reality, the Jacoby family had been indebted to her from the very beginning.

…

The crisis at Jacoby Realty erupted far sooner than I'd anticipated.

I'd initially thought the company might be able to hold on to their sinking ship for another six months, but one problem after another dogged their steps once the Westside development came to a screeching halt in March.

In early April, the contractors working on the agricultural and cultural tourism project collectively sent formal letters demanding payment. By mid-April, a notice that the bank was withdrawing its loans arrived at Jacoby Realty's headquarters.

Walter could no longer sit still and wait for things to turn around for the better. So, he personally brought Ivan and Avery to G&W's Bluewater headquarters.

…

That morning, I arrived at the office ahead of schedule. My secretary asked, "Mr. Gavell, should we receive them as arranged?"

I nodded and stood up. "Let's go."

When the conference room doors opened, all three people inside looked up simultaneously.

Walter noticed the secretary first, and then saw me following behind him. His expression shifted from impatience to utter disbelief. "What are you doing here?" he questioned sharply.

I didn't answer. Instead, I walked straight to the head of the table and took my seat.

The secretary placed a file in front of me and spoke respectfully. "Mr. Gavell, this is the strategic investment proposal for Jacoby Realty ahead of its bankruptcy restructuring. We're waiting for your final decision."