Twisted Love and Money Page 18

  “We can dig in and fight back. We can take them to court.”

  “Dad, our reputation is our business. Our backers will lose interest if it comes out that we are in difficulties. They only want stars. They will see us as a dog. We are in deep shit. Fifty million is not to be sneezed at. A bird in the hand.”

  “Peter if we sell out for fifty million, I get about thirty five and the trust fund get fifteen. It is a fortune, but I want a bigger fortune. The firm made twenty three million last year. They are stealing the company. I won’t stand for it.”

  “Look Dad,” Peter said firmly, “after the cock up with AF, we have to fire O’Rourke. O’Driscoll is old and due to retire. Dorothy is O.K. in finance, but really we also have to let her mate John go. His advice was too little too late. So what sort of a management team do we have left? Back to the O’Byrne trio of you Dorothy and me.”

  “The O’Byrne’s,” Michael said grimly, but with pride.

  “And a depleted management team. We need a five to ten year program to recover. You are not a young man Dad. You could enjoy thirty five million. Even if you just put it on deposit you could have an income in interest of over a million a year. Not a bad retirement package.”

  “But O’Byrne’s?”

  “O’Byrne’s is your creation Dad. Dorothy and me, we can find something else. You could set us up with a few million. We would survive.”

  “A few million, is that what you want? Listen bucko, don’t you see the dream?”

  “Your dreams Dad, reality has stepped in. It is take the money time as I see it. That or end up with nothing for your troubles.”

  “You, nor Dorothy, neither of you will get a penny until I am dead. You know that I have said it often enough. I control the trust fund and there is a lot of discretion. I had to scrape to make my living working for my dad and you two can expect no better. You get paid a good salary as long as you work for it. No capital. Try going it on your own, you will be sorry.”

  “No we won’t Dad. Dorothy and me are survivors. You taught us that at least. Don’t think you have to look after us, not unless you want to. Financially we will be both O.K. Likely thing is that AF would keep us on you know.”

  “No they won’t. I won’t have an O’Byrne working for whoever took us over. I’ll give you both a small income. After that it is up to you. And Ann-Marie when her time comes.”

  “O.K. Dad,” Peter gave him a quick hug, putting his arm around his fathers shoulder for a second and then letting go. Peter’s heart was singing. His Dad was talking about what he would do when he sold out, not whether to fight. Peter began to feel his millions were coming within his grasp, the millions AF would put in his back pocket. Then he would do some living.

  “I would have to accelerate plans to go abroad to avoid the Irish Capital Gains Tax,” Michael added.

  Peter laughed, “South of France with millions in the pocket Dad. Could do worse old man.” His voice was cheerful and concerned only for his Dad.

  Michael sighed. Fifty Million in cash was a lot. Well thirty-five after the other shareholders. But on the other hand he had been on his way to being seriously rich and seriously important before this upset. He would have been up there with leading Irish Business families like the Smurfits and the O’Reillys.

  But Peter had come back from London with convincing evidence. The AF evidence showed that the foul up was not just a one off. O’Rourke had ruined him. He would never forgive his incompetence. He had put too much trust in Dermot O’Rourke.

  Peter watched the set expression on his Dads face. He could guess at what he was going through. Still he had given him the facts. Dad had to face reality.

  “We have to go into the boardroom Dad. They will be waiting for my post London briefing. Let’s take them through it. What you need is to develop a strategy.”

  “For what?” Michael asked, confused.

  “Dad,” Peter said confidently, “you and me are fighters. We need to think how we get the AF price up from fifty to sixty million. Let’s give them a fight on the terms even if a takeover is inevitable.”

  “That’s my boy.” Michael said, “I knew we reared a fighter.”

  “Come on Dad, let’s face the board.”

  The board had been waiting for over an hour.

  Michael came in, Peter close behind. Michael frowned at the sight of James O’Driscoll rummaging in the drinks cabinet.

  “Whiskey Michael?” James greeted him as he came in.

  Michael gave him a stony look. “We don’t want to be pissed; this is an important board meeting.”

  “Cocktail hour Michael, one won’t do anyone any harm. Anyone else?”

  They all shook their heads. James shrugged and poured himself a scotch. Michael said nothing. James was Michael’s man. Together they had forged the business. James would need a drink when he heard the news. Michael resolved grimly to himself to make sure James was provided for whatever happened.

  “Meeting to order,” he announced and James resumed his seat.

  Michael looked around. Dermot, Dorothy, John, Peter, James. His board. The men he had selected to build an empire. Men of straw. He could see it now. Nothing like a failure to take the mist off a man’s eyes. He had viewed them as heroes, invincible men. And now his dream was in the dust. They looked so ordinary.

  Peter had been well prepared by Crawford’s men. They had provided him with the bones of a presentation and coached him on his report to his board.

  “I would like to make my report.” Peter said, getting to his feet. “It is not a pleasant story but I think it is convincing. I had a very tough session with AF. First with their Managing Director, then I saw their Corporate Development people, and then I had a series of meetings with their quality and procurement teams. I grilled them all thoroughly. I also saw Simmons, their quality consultant. On the way back in the plane I put it all together. The result Gentlemen, and Dorothy, is a crude presentation.”

  Peter listened to himself speak, impressed by his own delivery. It was as if someone else was talking. He felt good. He had their fullest attention. He could feel that they were being impressed. Except O’Rourke, he had the same deep devious impassive face as usual.

  “Why you Peter?” Dermot O’Rourke interrupted. “Why did they choose to deal with you? This is a very serious business. Why will their people not talk to my people down the line?”

  Peter looked scornfully at Dermot. “Dermot, they may not trust your people. You may think everything is straight, but you will not feel so self-assured when I present my report. I think you will find that your own people have pulled the wool over your eyes.”

  Dermot snorted in contempt. Michael waved him silent. “Carry on Peter. Don’t interrupt gentlemen, and Dorothy, until he has finished his report,” Michael pronounced sharply.

  Peter’s presentation contained numerous examples, stretching back over several years, of ‘passing off’ where O’Byrne’s had supplied sub standard produce to AF companies, including non-organic supplies passed off as organic.

  Dermot waited out the presentation, his fury growing, wanting to jump in and protest, but knowing that Michael was a stickler for his rules and would cut off any interruption to Peter’s presentation.

  “I have seen the evidence with my own eyes,” Peter said as he concluded, “The AF people have a large dossier. They did not cut us off lightly. They are considering legal action against us for damages and fraudulent practices. When they made their move against us it was on a basis of a very well prepared dossier.”

  “It’s rubbish,” Dermot finally exploded. “These allegations are a tissue of lies. What you have is fabrication built around half-truths. Every firm has blips in dealing with customers. We have had some blips in our dealings, settled to everyone’s satisfaction over the years. What you are showing Peter is these incidents distorted. We have never supplied substandard. We have never passed off Non-Organic produce as Organic supplies.”

  “They have the evidence,” Pe
ter said flatly.

  “Why don’t they produce it in detail?” Dermot demanded.

  “Simple, they are preparing to take us to court. They do not want to reveal their book of evidence prematurely.”

  “Bullshit. Let’s get to court. We will clean them out.”

  “Or we will loose our backers and also other customers in the glare of publicity.” Michael said.

  “We have to fight them,” Dermot demanded fiercely, “I don’t know what their game is but we… At least you Michael, James, and me, we have put our lives into this company. We must stand together now. This is not the first big setback we have had. Grant you it is the biggest. But we must stand united and fight.”

  “Michael,” James added earnestly. “ I agree with Dermot. This feels like a set up. I remember the circumstances of one of the examples Peter has quoted. It was cleared up at the time.”

  “Are you calling me a liar?” Peter demanded.

  “Of course not Peter. You were presenting the facts as AF gave them to you. You were not involved at the time of the incident I refer to. No I just do not accept the allegation.”

  “John,” Michael asked, surprisingly pleasant, seeming to switch topic, “you are the outside financial man. What do you think of Peter’s presentation?”

  John looked at Michael, and then at Dermot. Since his interview with Michael, when Michael had threatened him with the sack, he was unsure where his loyalty lay. Honest, he decided, be honest, it is your stock in trade.

  “Michael, I have to take the allegations at their face value. I have no track record in this.”

  “Granted.”

  “The allegations are as stated by Peter. There is no formal AF paper.”

  “That is a point,” James interjected.

  “Continue John,” Michael instructed.

  “There are two propositions. First AF allegations are correct. Second AF allegations are rubbish.”

  “If they are correct?” Peter asked.

  “If the allegations can be substantiated, then we have to face up to the loss of the AF account. We would also have to accept that our past profits and margins have been based on fraudulent passing off and systematic deceit over some years. If this practice has been the case with AF it begs the question in relation to our other customers. You will remember they had a similar scandal in the meat trade some years ago. Is it possible that false declarations have been made? If AF allegations are true then a major internal inquiry is called for and possibly the fraud squad needs to be brought in.”

  “It’s all lies,” Dermot roared.

  “You will get your turn Dermot let us hear John out.” Michael argued, unruffled, “carry on John.”

  “As I say I cannot comment on the accuracy of the AF allegations but if they are true we are in deep financial shit.”

  “And if the allegations are untrue John?” Dermot asked coldly, tempered steel in his voice.

  “Then Dermot, AF has gone to a great deal of trouble. They will not cooperate with our people. We can only disprove their case by an internal inquiry and then taking AF to court. If we go to court on a false basis we will be ruined. Even if we win there will be bad publicity. The Debenture holders and the banks might withdraw support.”

  “They might do that in any case. We already have their man Kenny to deal with,” Dorothy suggested. “My meetings with the banks have not indicated any enthusiasm from them for increasing their exposure to help us.”

  “Dermot, your defence?” Michael said suddenly.

  Dermot looked coldly at Michael. “Michael I believe you are allowing yourself to be panicked.”

  “Address the issues on the table Dermot.” Michael threw back.

  “Do I still have your trust Michael?” Dermot asked. “You astounded me the last time we met when you threatened me with the sack.”

  There was a silence in which the tension tightened in the stomachs of all present. Dermot had brought it into the open. Who trusted whom? Michael looked balefully at Dermot.

  “It is not a question of trust Dermot. It is a question of questions. Unanswered questions. I need a detailed refutation of these allegations, point by point.”

  “You will have them Michael. AF has had time to build a dossier. I need time to refute it. It is all lies and half lies. I know what happens at my end of the business. There is no way all this has been going on.”

  “You may be wrong Dermot. You may have trusted someone too much.”

  “I trust no one,” Dermot said flatly. Somehow they all believed him.

  But Michael was in no mood for Dermot to be sensitive.

  They could sense Michael’s pain. The company had been winning all the way. They were on their way to glory. Now AF had plunged a knife in. Whatever happened things would never be the same.

  “I discussed a rescue arrangement with AF,” Peter resumed his presentation. “They are pro O’Byrne’s. They are pained at the way things have gone; believe me as pained as we are. But they have their business to run. They realize their move knocks the bottom line off our business in profit terms. They want to keep us as a supplier and provide the necessary funds to keep the business afloat.”

  “Big of them,” Dermot commented dryly and Michael threw him an angry look, but Peter continued unabashed.

  “ However their conditions are that they want to move in, clean out all top management. Other than in Marketing, where they are very impressed with what we have done. They don’t need two finance people, they have their own and they want to reorganize the procurement and Supply end, a major clean out at all levels. If they do this they reckon they can save the business and resume dealings with O’Byrne’s.”

  “The business is not lost yet, why do they need to save us?” John said spiritedly.

  “I am strongly of the opinion, Michael said sadly, “that I should sell out to AF. They will take over the balance of the company for fifty million. Peter is urging me to get that up to sixty million and we’ll see. If it is fifty, of that I get thirty-five in up front cash. If we go on we may not survive and then I am broke.”

  “Take them on,” Dermot shouted, “Take the British bastards on. They are multinational colonists. We threw the Brits out of Ireland, or most of it. We can see AF off. They are bluffing. Don’t fall for it Michael.”

  “Listen to who is talking about the Brits. That was all right when you were a callow youth Dermot. Not now, not from a grown man,” Michael retorted. “AF is a major multinational. You don’t expect me to believe that they would fabricate all this.”

  “Yes!”

  “I’m sorry Dermot. I need counter-evidence. You need to get it fast.”

  “Give me details, details Peter,” Dermot demanded. “ I cannot fight with vague allegations. They must substantiate or shut up.”

  “AF will in court,” Peter replied, undisturbed.

  “Then court it is.”

  “Court is too late.” Michael shouted, his red colour rising to crimson.

  “Steady on Dad,” Dorothy pleaded.

  “Steady,” he screamed, “steady, we are going down the plughole and you say steady.”

  “Please Dad.”

  “Please Dad,” Peter grimaced.

  “How long can we last if AF don’t pay their bills and give no more business? We have commitments and we can’t...” Michael paused as words failed him.

  Dorothy said nothing. She could sense his blackness.

  “If we stick together we can fight this,” John said appealing to them all.

  “You are just a blow in,” Peter stormed. “What do you know? Do you know what it has taken to build this business?”

  “We must not be cowards, we must stand up and be counted,” John began.

  “Cowards. Cowards is it?” Michael stood up and slapped the table. “Winning does involve knowing when you cannot win. I am not fighting this; I am going to go with the flow. But I’ll tell you all one thing.”

  “What?” John asked trying to sound polite.
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  “You John, and Dermot, You two had better not think you would be allowed to wait until AF comes in. My last act will be to fire the both of you.”

  With that Michael stormed out of the boardroom. Peter smiled triumphantly at the group and rose and followed his father. Dorothy, seeing Peter go to her father, rose also. With an apologetic smile she left. No way Peter was going to cut her out from her father. James rose as if to go and then sat down again.

  The non-family board members were left sitting in silence.

  “It looks like Michael has made his mind up to sell,” James said doubtfully.

  “He has gone soft,” Dermot spat. “He has been sailing in fair winds for too long. He is unused to things going other than well.”

  “He is scared he is going to lose his future and his sons future,” James said sadly.

  “John tell us, what is the general climate like for management buyouts?” Dermot asked.

  “I have to be honest. They are not flavour of the month at present,” John said regretfully.

  “Forget it,” James said.

  They sat in silence. Dermot rose and fixed another drink. “This is like a wake,” John remarked as he accepted another Gin and Tonic.

  “How much would we need for a management buyout John?” Dermot asked suddenly.

  John could see the interest in his eyes.

  “And who would lend us the money?” James threw in.

  “Just a minute,” John said briskly but with a grin, “you have given me an idea.”

  “Tell,” James encouraged.

  “O’Donoghue's have a stock market quote. They also have a very conservative balance sheet in Howlett Holdings. If Colm O’Donoghue was willing, Howlett Holdings could borrow. In addition if they paid in shares. I don’t suppose Michael would accept part in shares?”