Complicado (Queen of the South, My Season 6)

Part 5 - Risk Management

The charter flight to Zurich was short and Teresa was glad because they had time for a ladies' fashion store so that both she and Kelly Anne could buy appropriate business attire for the meeting. Marcel and Chicho waited for them patiently to complete their improvised shopping; then they all got into a cab and were dropped off in front the imposing old building of EFG Bank AG on Bleicher Weg.

The meeting went smoothly at first as the account manager, a lean balding man going by Herr Egger, fully understood the fact that the venture cap had defaulted, which in his vast experience had happened many times before. His attitude to venture capital was mainly negative, a fact that Teresa decided to let pass. He showed understanding for all the difficulties the project was faced with.

No matter how full of understanding the bank was, they were not in a position to extend further credit as the properties were located in 'unstable' countries whose ratings were not highly rated. It was a sad fact of life! Investment in the 3rd world was risky and no one cared to carry the risk!

"Had the properties been in the USA....etc, etc,", the Egger guy kept talking in his heavy accent as Teresa cast quick glances over to Marcel and was not surprised to see his expression getting more dejected with every statement the banker made. The man was so inflexible that he even had the gall to state that Herr Dumas should be thankful that the Bank had decided not to recall the full loan right away, but instead had given him a three months' grace period before payments were due and before a reassessment would be in order. Herr Dumas was kindly asked to start looking for alternative financing. Once it was provided, the Bank could guarantee that in three months a full recall of the loan would not be considered.

"How can we possibly get another venture cap on board?" Chicho said after they had cleared the conference room and were in the elevator.

"We can't!" Marcel said. "And Egger knew it...Our financials would not convince anyone else to back us up, especially with the unclarity around this contamination and the cleanup cost!"

"We need to find this VC and figure out why they bolted!" Kelly Anne shook her head. "Chicho told me they had helped you with the DC hotels you built a year ago, and it was them who suggested this international expansion. I bet they knew the seller and the issues with the land!"

Teresa hadn't been present when Chicho had dined with Kelly Anne and this piece of information was new to her: "Does that mean that if we can locate the VC and prove ill intent, we can have the sale voided?"

Kelly Anne made a face: " I can't say for sure...but it's possible. I have to check Thai law as the purchase occurred there."

The cab ride to the airport took long as the traffic had intensified. Marcel and Chicho were both flustered and upset as their conversation about next steps kept circling around having to put out more personal funds if anything related to the project was to proceed. They were getting upset with each other until Teresa finally interrupted them saying straight to Marcel's face: "I owe you Marcel, I will bank roll it for you if we are not able to void the land sale!"

"You...ahh...don't owe me anything..." he started saying under the stern gazes of both Chicho and Kelly Anne as Teresa interrupted again: "This time I intend to do it right by you...so you can hold your breath...you'll see!"

===

" If you're to back him up only for the portion of the funds of the defaulted VC, it's very doable, but as you have no idea what the cleanup may cost, the exposure is not quantifiable!" Kelly Anne said looking sternly at the cell phone on the coffee table, then at Teresa, then at James, who were seated on both sides of the table.

Pote's strained voice came over the phone: "It's like 50 – 60% of your capital including the reserve, is what Bobby calculated."

"Yes...but it might turn out to be way more...because once you sign contracts and make commitments, you can't just back off because...ahh...if Marcel can't get the resorts to operate and make money, the investment will be lost...that's the big issue here! Are we prepared to risk half of our money?" Kelly Anne hated lack of clarity more than anything. She was still the team member who scared the easiest and it showed.

"It's risky, I admit", Teresa said: "...but I need to do this...and I need all of your support." She looked at James as he had kept silent so far.

"You paid your debt to him, Teresita!" Pote didn't sound happy. James's silence made her even more anxious and she could feel her hands het cold and sweaty, so she grabbed the still warm tea cup in front of her.

"I know we all paid a price in the narco life and got out with money that we've invested very well", Teresa started and then quickly corrected herself: "...What I mean is that we stuck together then and made it out all right...so it only seems right to stick together again now because if we become partners in the resort development, it's huge growth......", she looked at everyone pointedly.

"It may be so, but now is not then...and we are 20 years older with families who depend on us." James said as his eyes met Teresa's and then Kelly Anne's briefly. The words were heavy and he hated having to intervene. Pote could be heard saying 'Yeah man!" over the phone.

"So, we need to manage the risk...Is that what you're saying?" Teresa asked.

"How can we do that?" Pote asked fast before James could respond.

"By splitting the businesses in different trusts", Kelly Anne was ready with the response even before he had finished his sentence. It was obvious she had been thinking on the matter.

"That makes sense!" came his surly reply over the phone as Kelly Anne and James shook their heads approvingly.

Teresa could feel her heart pounding as evidently her family had serious doubts and was not ready to follow her blindly. It hurt like hell. Yes, Life had changed! The dynamics had changed! Did she have the right to expect that they all jump in the fire for her again?

She heard herself say: "No lo hagas mas complicado de lo es, Pote! Porque lo haces?"(Don't make it more complicated than it is, Pote! Why are you doing this?)

"Ahem!" Pote cleared his voice: "Porque es la vida y la fortuna de los hijos...los tuyos y los mios (because it's the life and the fortune of the children, yours and mine)...and you're not 25 any more to amass a fortune! Say something, James...You gotta be able to see the risk, cabron!"

James could be heard inhaling deep and then looked Teresa with palpable pain in his eyes and said: "I am with Pote on this one." His voice was soft because he knew that's not what she wanted to hear but he had set his foot down two times throughout the years to stop her from taking risks he considered too high, and their relationship had withstood the turmoil just fine.

"Carajo!" Teresa mumbled unable to hide her frustration.

"To be frank, Teresita", Pote said: "I don't think you should be getting involved at all! You can't hold Marcel's hand...both their hands for that matter!" Pote's tone was pissed and he wasn't even making an effort to hide it.

"I never thought we'd get to the point of not being able to...ahh...work through stuff ...and have to split the businesses!" she said still processing the facts.

"I'm sorry...it's my fault for ...ahh...suggesting to split the businesses..." Kelly Anne was saying as James jumped in: "No, Kelly Anne, it's not. You're the legal brain here...You'd have been remiss, had you not suggested it."

After a few more heated sentences they agreed to have Kelly Anne draft documents to split the venture capital company in a separate trust from the rest of their portfolio: the two malls, the three cantinas, the winery and the vineyard, the security company, the horse stables, the shooting range and the sports studio.

Teresa had difficulty getting enough air by the time the conversation was over and Pote hung up that despite her still aching body from her miserable skiing attempts, she put on her snow suit and got out for a walk sensing that any further discussion would only exacerbate things. No one tried to stop her from going out in the cold and no one asked to join her.

At least they had not insisted on splitting the business even further down to the person who actually ran each one of them! That would have hurt like hell, she thought as the wind hit her face. She felt she had lost something valuable today, although she couldn't really say what.