the gut. “What are you talking about? Our financial condition has never been better.”
“We just can’t extend you any more credit. That’s it. Plain and simple.”
Edward tried to calm his anger. “Stan, do I recall correctly that you begged me to move my business to Broad Street National three years ago and told me at that time your bank had a statutory loan limit of $40 million to any one customer? We currently owe you $20 million, secured by at least $50 million worth of real estate. We’ve never been late a day on any of our loan payments, and we keep several million dollars in deposits with you. So what the hell’s going on?”
“It’s a different environment out there, Edward. We can’t do what we used to do. It’s just that simple.”
“You keep saying that, Stan. But it’s not simple. We’ve got a huge growth opportunity here. We’re growing market share as our competition is falling by the wayside, closing locations, or going out of business entirely. There’s never been a market more conducive to growth, and now you’re telling me you don’t want to be our financing partner anymore?” Edward stood and looked down at Burns fiercely. “This is a hell of a shot out of left field, Stan. I’ve already signed purchase agreements, put down forfeitable earnest money deposits on lots in Pittsburgh, and signed employment contracts with the seven store managers based on your past assurances of financing support.” He turned to leave the office when Burns’ tired voice halted him.
“Edward, please sit down. I haven’t told you everything.”
He whipped back around. “What more could there be?”
“The bank’s under a great deal of pressure. The Federal bank regulators ordered us to reduce our exposure to commercial real estate. You’re one of our largest commercial real estate borrowers, so the loan committee has instructed me to reduce our commitment to your company specifically.”
Edward, still standing, glared malevolently at Burns. “You’ve already explained that to me.”
“No. You misunderstand. We want you to pay off all of your loans as soon as possible.”
Edward laughed bitterly. “What are you smoking, Stan? The bank is making a lot of money off my business. You probably don’t have a better client than Winter Enterprises. We’ve got a large amount of equity in the real estate you’ve financed and we pay our bills on time. Is this a joke?”
Burns’ face had turned beet red. “This is no joke. I can’t tell you how badly I feel about this. I’m just following orders.”
“We have a loan commitment from the bank. We signed a master note with a twenty-year maturity on it, backed by all twenty-four of our restaurant properties.”
“That’s true, Edward, but the bank has the right to call that note at the end of each five-year anniversary of the note. The first five-year anniversary is July 29 of this year. We will need you to make other arrangements so you can pay us off entirely by no later than that date.”
“That’s two weeks from now. Impossible.”
“Nevertheless, that’s the way it’s got to be.”
“I want to talk to Sol Levin.”
Burns sighed. “That won’t do you any good.”
“I’ll be the judge of that,” Edward said.
“The regulators ordered our board of directors to terminate Mr. Levin this morning. He’s no longer the president of the bank.”
CHAPTER THREE
Edward was as angry as he could remember ever being. He didn’t quite understand the machinations behind the bank’s actions, but he sure as hell understood the implications. Now he had to go through the painful process of establishing another banking relationship in two weeks, putting together a massive loan application package and then schmoozing some new banker who knew nothing of his business and escorting the new banker to some or all twenty-four of his restaurant locations. By the time he reached his dark-blue Corvette parked in the bank parking lot, he’d calmed
“We just can’t extend you any more credit. That’s it. Plain and simple.”
Edward tried to calm his anger. “Stan, do I recall correctly that you begged me to move my business to Broad Street National three years ago and told me at that time your bank had a statutory loan limit of $40 million to any one customer? We currently owe you $20 million, secured by at least $50 million worth of real estate. We’ve never been late a day on any of our loan payments, and we keep several million dollars in deposits with you. So what the hell’s going on?”
“It’s a different environment out there, Edward. We can’t do what we used to do. It’s just that simple.”
“You keep saying that, Stan. But it’s not simple. We’ve got a huge growth opportunity here. We’re growing market share as our competition is falling by the wayside, closing locations, or going out of business entirely. There’s never been a market more conducive to growth, and now you’re telling me you don’t want to be our financing partner anymore?” Edward stood and looked down at Burns fiercely. “This is a hell of a shot out of left field, Stan. I’ve already signed purchase agreements, put down forfeitable earnest money deposits on lots in Pittsburgh, and signed employment contracts with the seven store managers based on your past assurances of financing support.” He turned to leave the office when Burns’ tired voice halted him.
“Edward, please sit down. I haven’t told you everything.”
He whipped back around. “What more could there be?”
“The bank’s under a great deal of pressure. The Federal bank regulators ordered us to reduce our exposure to commercial real estate. You’re one of our largest commercial real estate borrowers, so the loan committee has instructed me to reduce our commitment to your company specifically.”
Edward, still standing, glared malevolently at Burns. “You’ve already explained that to me.”
“No. You misunderstand. We want you to pay off all of your loans as soon as possible.”
Edward laughed bitterly. “What are you smoking, Stan? The bank is making a lot of money off my business. You probably don’t have a better client than Winter Enterprises. We’ve got a large amount of equity in the real estate you’ve financed and we pay our bills on time. Is this a joke?”
Burns’ face had turned beet red. “This is no joke. I can’t tell you how badly I feel about this. I’m just following orders.”
“We have a loan commitment from the bank. We signed a master note with a twenty-year maturity on it, backed by all twenty-four of our restaurant properties.”
“That’s true, Edward, but the bank has the right to call that note at the end of each five-year anniversary of the note. The first five-year anniversary is July 29 of this year. We will need you to make other arrangements so you can pay us off entirely by no later than that date.”
“That’s two weeks from now. Impossible.”
“Nevertheless, that’s the way it’s got to be.”
“I want to talk to Sol Levin.”
Burns sighed. “That won’t do you any good.”
“I’ll be the judge of that,” Edward said.
“The regulators ordered our board of directors to terminate Mr. Levin this morning. He’s no longer the president of the bank.”
CHAPTER THREE
Edward was as angry as he could remember ever being. He didn’t quite understand the machinations behind the bank’s actions, but he sure as hell understood the implications. Now he had to go through the painful process of establishing another banking relationship in two weeks, putting together a massive loan application package and then schmoozing some new banker who knew nothing of his business and escorting the new banker to some or all twenty-four of his restaurant locations. By the time he reached his dark-blue Corvette parked in the bank parking lot, he’d calmed
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