Chapter 14 - Redwood
Redwood Hospitality turned from buyer into adversary.
It filed suit claiming Thomas had improperly interfered with its transaction.
Evelyn countered with the secured-debt documents.
Within weeks, discovery revealed Redwood executives knew Thomas possessed contractual rights before negotiations began.
Their lawsuit weakened.
More importantly, Redwood had promised David a private payment.
$5 million.
Not part of the restaurant purchase price.
A “founder transition bonus.”
Thomas understood immediately.
“That’s why David wouldn't tell me.”
Evelyn nodded.
“If the transaction closed, he personally received money even if your claims reduced value elsewhere.”
David had structured a deal benefiting himself.
That was difficult to defend.
Redwood withdrew the lawsuit.
Then withdrew from the acquisition entirely.
David lost his exit.
The $9 million private loan came due.
He could not pay.
His personal guarantees placed his house and investment accounts at risk.
Thomas had wanted consequences.
Seeing them felt different.
Sarah asked:
“Are you happy?”
May you like
“No.”
“Good.”
