…continued from Clinton Hayes.

“Who is Dixie Bombay?” This time it was Moss that spoke first. In his mind he had the image of an exotic dancer.

It was the senior Jackson’s turn to shift uncomfortably in his seat.

His son Charles spoke for the first time since the meeting started. “Dixie Bombay is a wholly owned subsidiary of Savannah Banana, dating back to the early seventies when Savannah was trying to get in on the Indian banana trade.”

What he didn’t explain was the real reason for lending to the subsidiary. Even then, the outside investors were concerned about the exposure to Savannah Banana, and the loans were made to Dixie Bombay in an effort to avert further criticism or jeopardize future funding.

“And the exposure there?” Again, it was Walton getting to the point.

Tubby Winslow looked at his notes, as if he didn’t know the answer off the top of his head. “A little over $19 million, with an $18 million balloon in three years.” He went on to explain, “Typically the Dixie loans were amortized over 20 years with a balloon due after five. Instead of demanding the balloon, we typically refinanced the balance over another 20 years.” And then, as if further explanation was required he added, “It’s 10 per cent money.” He raised his eyebrows and peered over his spectacles for even more emphasis.

“If we can collect it,” Moss, replied skeptically.

Julie decided it was a good time for her to address the counselor, “Mr. Lewis, does the Federal seizure include Dixie Bombay?”

The attorney looked at her as if a thought just occurred to him.

She continued, “I think Dixie was incorporated in the Bahamas. The wires come from an offshore account.”

“The Feds are probably not on to Dixie yet,” Lewis speculated. “I could make an inquiry, but I don’t want to lead them someplace they might not find on their own, at least not immediately.”

“Does Dixie have any assets?” Walton was sure of the answer, but felt obligated to work through the problem logically.

“According to the documents from the last refinancing,” the accountant read from his notes, “there are warehouses and manufacturing facilities in Mumbai and Mangalore, half ownership in a private railway in Gujarat, and a cargo ship.”

Charles spoke up, again to Moss, as if he were completing his earlier thought, “The good news for you and Walton, there isn’t any investor money in the Dixie deal. It was all done by the Consortium.”

“Little comfort if Jackson goes down,” Moss replied, again with skepticism.

This statement brightened the senior Jackson, and he sat up a little straighter in his seat when he realized his outside investors had a vested interest in his firm’s survival. He would not have felt so optimistic if he knew the coups that Walton and Moss were separately planning.

The board room was silent for a few minutes. Billford was the only board member who had not spoken. He had nothing to say and was otherwise preoccupied with his own affairs.

Lewis looked at his old friend and client, empathetic to his situation, and asked, “Bill, have you talked to the others?”

Jackson shook his head in the negative and then in a tired voice, he addressed his daughter, “Julie, I guess it’s time we go to New York.”

***

The lenders at Jackson-Beauregard had no reason to worry about the Feds seizing Dixie Bombay. The only person left at Savannah Steamship that knew anything about the subsidiary was Nathan Pickett, and he wasn’t talking, especially to that pimple faced prosecutor Van Owen.

###

This story continues with The Cruise.

2016 Kirt Van Buren