Chapter 7 - Blue Horizon Has A Hidden Financing Gap
The independent review found another problem.
Blue Horizon needed more capital than Garrett had disclosed.
Construction estimates had increased by nearly $180 million.
Bianca’s optimistic profit model assumed those costs would fall.
There was no signed contract supporting that assumption.
Martin, the CFO, had warned Garrett.
Garrett told him to “solve it after closing.”
Martin documented the warning.
Rosalie asked why he had not informed the board earlier.
“I should have.”
He admitted fear.
Garrett had removed executives who challenged major deals.
Not formally fired them for dissent.
He reassigned them.
Reduced responsibilities.
Stopped inviting them to meetings.
The pattern was subtle.
It was still effective.
Rosalie recognized how West Enterprises had become dependent on outside
financing.
Not because the company was worthless.
It owned valuable projects.
But Garrett expanded faster than internal cash flow could support.
Each new project depended on the next financing.
Rosalie’s network repeatedly filled the gap.
She had thought she was helping him survive temporary crises.
In reality, she may have enabled a growth strategy that never learned
restraint.
That realization hurt.
Garrett was responsible for his decisions.
But Rosalie had to examine hers too.
She told Bradford Capital’s independent committee:
“No more relationship-based exceptions.”
Future West financing would be evaluated like any other borrower.
If the company qualified, fine.
If not, no rescue because she loved its founder.
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For the first time in seven years, West Enterprises would have to prove
it could stand without Rosalie quietly catching it.
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