Fountain Powerboats files for bankruptcy

Chris

Chris

Administrator
Staff member
Yeah, I've seen various amounts reported as the supposed assets.

I would imagine it could vary depending on whether they have paid for the particular asset or not.

Whatever the case, it isn't looking too good.

Hopefully they reorganize and then survive long term. :thumb:

-Chris
 
Chris E

Chris E

Member
it would appear that they must have a lot of "off balance sheet" activity. if that is indeed accurate (which i highly doubt), it would mean that they have leased everything, or deprcitated everything to zero, neither of which makes any sense.

unless of course, that fountain is a shell, and all the assets are in a holding company, to protect them. either way an interesting story.
 
Chris

Chris

Administrator
Staff member
It should be interesting to see how this effects whatever their agreement was with Brunswick and Mercury regarding the Baja deal.

-Chris
 
Chris

Chris

Administrator
Staff member
Here's another little article updating things.

Essentially Fountain went to auction and there was only one bid, which came from Foutain's largest creditor FB invesments.

Fountain tried to delay the auction, in order to allow another company Liberty Associates to attempt to purchase Fountain. Liberty's plan was to reorganize Fountain and under the plan Fountain would continue to operate.

Here's a link to the full article... :)

http://www.boating-industry.com/output.cfm?id=2318887

-Chris
 
Fun Times

Fun Times

Active Member
Major Victory for Fountain Powerboats

Court rules Fountain can reorganize

Posted on October 09, 2009 ShareThis
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A bankruptcy judge in North Carolina ruled Fountain Powerboats can reorganize and is not required to sell to FB Investments.




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The judge said Reggie Fountain can remain president and CEO of the company and permitted it to reorganize with Liberty Associates, according to a story posted on WITN's Web site.
FB Investments is a corporation formed by the principals of California-based Oxford Investment Group for the purpose of acquiring the Regions Bank note on Fountain. It purchased the $19 million note at auction for $6.75 million, and had put in an unopposed credit bid of $8.75 million for Fountain.
The judge says Fountain must now make monthly payments of $29,375 to pay off that note.


In a resounding victory for Reggie Fountain, a judge has allowed Fountain Powerboat Industries Inc. to reorganize and retain its assets after a hearing held in U.S. Bankruptcy Court in the Eastern District of North Carolina on Friday morning.

Bankruptcy judge Randy Doub ruled in favor of Fountain, allowing the world-famous performance boat builder to restructure its Chapter 11 bankruptcy protection and reorganize with the group Liberty Investments, which acquired both Donzi and Pro-Line earlier this year. Liberty will assist in financing the reorganization of the company and pay off its creditors.

Company founder Reggie Fountain will be retained as president and CEO, and will continue taking boat orders for both Fountain and Baja brands.
 
K

kytekeith

New Member
I visited fountain boats about 2 weeks ago. Toured the plant with Wyatt Fountain. There was not much to see, they were coring the last boat on order. they were rigging one fountain and a baja. I believe they had some finished boats out back but no buyers. Wyatt said they should wrap up the bankruptsy within a couple months. Without anyone ordering thier boats it will be tricking staying afloat.

Best of luck to Fountain Boats,
Keith
 
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