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Random Quote: Civilized men are more discourteous than savages because they know they can be impolite without having their skulls split R.E. Howard
Published: Sunday, October 11, 2009 2:19 AM EDT
Fountain Powerboat Industries Inc., parent company of Fountain Powerboats, has been allowed to reorganize and retain its assets.
Following a hearing held in the U.S. Bankruptcy Court in the Eastern District of North Carolina on Friday morning, chief bankruptcy judge Randy Doub ruled in favor of Fountain and will allow the company to restructure its Chapter 11 bankruptcy protection and reorganize with Liberty Investments.
As previously reported in the Daily News, the investment group will be majority shareholders in the company. Liberty will help finance the reorganization of the company and help the company pay off its creditors. Reggie Fountain will be retained as the sportboat company’s president and CEO under the new deal.
Earlier in the year, Liberty became majority shareholders in two fledgling powerboat companies — Donzi and Pro-Line Boats. Fountain called the group of investors “avid boat lovers.”
“I would like to thank my lord and savior, Jesus Christ, for helping us get through this thing,” Fountain said following the ruling. “Our destiny is in our own hands.”
The sportboat company will move ahead with taking orders, but Fountain cautioned that turning his company’s debt into a profit will be no easy task, especially considering that it’s the offseason in boating.
“We’re going to try to do what we can to get over the hump,” he said. “But, it’s not a done deal. How everything is determined is up to Liberty and the courts.”
The sportboat company is some $19.6 million in debt to the Oxford Investment Group, which purchased Fountain’s bank note from its largest creditor, Regions Bank, for $6.5 million several weeks ago. Judge Doub ruled that the sportboat company make monthly payments of $29,375 to Oxford to pay off the bank note.
Oxford, under the name FB Investments LLC., was looking to obtain Fountain Powerboats’ assets at the bankruptcy hearing, but will now be treated as a creditor.
Fountain was on the witness stand for over an hour Friday during the hearing. He cited several key facts about the company and its economic impact on Beaufort County and eastern North Carolina. The company has made some $991 million in sales since starting over 30 years ago, and has paid over $247 million in salaries during that time, according to Fountain.
“One-fourth of our production goes to the salaries of the people in the community,” he said. “I’m very proud of that.”
At one time, the company, which is based out of a 65-acre plant on the south side of the Pamlico River, employed more than 400 people.
Fountain hopes that Liberty will keep the sportboat company in the county.
“My goal for the future is to try to keep the company here and move forward,” Fountain said. “We’re going to be here working hard.”
Somebody please explain this one to me, were they already into Oxford?
Quote:
The sportboat company is some $19.6 million in debt to the Oxford Investment Group, which purchased Fountain’s bank note from its largest creditor, Regions Bank, for $6.5 million several weeks ago.
The way I understand it, Oxford's principles formed FB Investments to purchase the note from Regions Bank. Regions held the note against Fountain and decided to sell it to FB at a discount. I'm no corporate guru but it seems to me the article is using the Oxford and FB names interchangeably. Probably not technically correct to swap names like that but it seems the principles are the same in both cases (according to the article).
Looks like Regions loses a boatload of money, Oxford/FB has to wait to see if their $6.5 million gamble pays off, Reggie stays in business a little longer. Yea team.
I hope he can fix it but I'm not holding my breath. Maybe Liberty can rein in the problems and get Fountain on the path to success.
Disclaimer: If you see emoticons, that means the above is written in jest. It is for entertainment purposes only. It is not meant to represent any actual persons, places, or things. It is the opinion of the poster that it is funny. Your opinion may vary. No animals were harmed in the typing of this post but a few egos may have been bruised.
Somebody please explain this one to me, were they already into Oxford?
No, they did not previously have any debt with Oxford. Fountain's biggest creditor was Regions Bank to whom they owed $19.6 million, however Oxford recently purchased the Fountain debt from Regions Bank for $6.5 million with the intention of acquiring Fountain.
After purchasing the debt form Regions Bank, Oxford then made a $8.75 million unopposed credit bid to acquire Fountain.
What is a little unlcear to me is under the reorganization plan approved by the court is Fountain required to pay back the entire $19.6 million debt Oxford acquired from Regions Bank? I suspect the answer is yes, but it just seems like the market value of the debt and the assets are well less than $19.6 million so I just wonder if the court might have ruled on forgiveness of some of the debt.
__________________ "The problem with socialism is that eventually you run out of other people's money" Margaret Thatcher
31 Fountain Sport Edition
Looks like the smallest they made is the 30' range.
Until they start making boats in the 21-26' range, they can forget it. They won't be able to buttress the uncertainty of their longevity to their market with enough sales to cover the debt AND the operating expenses.
If you think I'm wrong, ask mike from Pro Line how his cheaper line of boats is doing.
id also like to hear what Mike's take is on this....at least as much as he can tell us. I value his opinion and expertise, and think this affects all of us avid boatlovers.
Fountain i think made a ~23-25ft tournament CC. Their beast is the 38'(both of them) which will be highly valued molds if things dont get better for Fountain. Someone will pick them up and make boats out of them eventually.
Looks like the smallest they made is the 30' range.
Until they start making boats in the 21-26' range, they can forget it. They won't be able to buttress the uncertainty of their longevity to their market with enough sales to cover the debt AND the operating expenses.
If you think I'm wrong, ask mike from Pro Line how his cheaper line of boats is doing.
DONZI and FOUNTAIN have always been, are now, and will continue to be competitors. The buyer for the product is still there although, of course, not in the same numbers. DONZI is shiping pretty high dollar boats every week.
The DONZI and FOUNTAIN world are quite different than my PRO-LINE world. Yes, we did introduce the PRO-LITE line to engage a market that we were not in with rolled gunwale boats, and to keep as many people working as posible. It's worked pretty good.
There is no reason at all that I can see that a new plan with FOUNTAIN wont succeed. Personally, I'm quite happy that Mr. Fountain will still be at the helm. We wish Mr. Fountain and all the very fine employee's in Washington, N.C. success.
We've all had to adjust.
I will admit though, the writer that used the word "fledgling" I would enjoy tweaking his nose some. Just a personal glimpse, not a formal company position. We love everyone.
What is a little unlcear to me is under the reorganization plan approved by the court is Fountain required to pay back the entire $19.6 million debt Oxford acquired from Regions Bank? I suspect the answer is yes, but it just seems like the market value of the debt and the assets are well less than $19.6 million so I just wonder if the court might have ruled on forgiveness of some of the debt.
The court hasn't established the value of the liability yet. It may very well rule the amount Oxford paid is an acceptable amount for Fountain to repay, it may decide the actual principle value is even less.
The thing is you probably have to sell 5 times as many 23's to net the same profit as 1 38'.
The dealer selling 5 - 23's for the same profit as 1-38 is doing much better. Cash Flow is much more important than net profit. He has had 5 customers to sell upgrades, options, motors, trailers...etc. Also 2 great points that our boss always says: 1. Business generates business and 2. If you sell one they don't
The dealer selling 5 - 23's for the same profit as 1-38 is doing much better. Cash Flow is much more important than net profit. He has had 5 customers to sell upgrades, options, motors, trailers...etc. Also 2 great points that our boss always says: 1. Business generates business and 2. If you sell one they don't
I think your mom and dad taught you quite well.
BEST REGARDS!
Mike
Looks like the smallest they made is the 30' range.
Until they start making boats in the 21-26' range, they can forget it. They won't be able to buttress the uncertainty of their longevity to their market with enough sales to cover the debt AND the operating expenses.
If you think I'm wrong, ask mike from Pro Line how his cheaper line of boats is doing.
AFAIK, FOUNTAIN has never been associated with entry level boats. Their 23-25's were/are the same high performance fish boats as their 38's.
The dealer selling 5 - 23's for the same profit as 1-38 is doing much better. Cash Flow is much more important than net profit. He has had 5 customers to sell upgrades, options, motors, trailers...etc. Also 2 great points that our boss always says: 1. Business generates business and 2. If you sell one they don't
Thats true, I didn't think about it in those terms but cash flow is VERY important.
__________________ 1988 Scarab Sport 225 Merc EFI's (slowRide)
AFAIK, FOUNTAIN has never been associated with entry level boats. Their 23-25's were/are the same high performance fish boats as their 38's.
I use a rather expensive 30' boat and also a rather in expensive 20' boat.
One for a purpose, the other for a different purpose.
One is a six figure boat, the other sells in the teens.
So then, one would be entry level the other not?
If I enjoy inshore, flats fishing, lower H.P. use I'm then "entry level"?
No one here is talking about quality of manufacture.
The conversation went to smaller boats, less money.
Smaller, less money does not have to = "entry level".
The dealer selling 5 - 23's for the same profit as 1-38 is doing much better. Cash Flow is much more important than net profit. He has had 5 customers to sell upgrades, options, motors, trailers...etc. Also 2 great points that our boss always says: 1. Business generates business and 2. If you sell one they don't
Our past differences aside. You couldn't be more right on this one.
If you sell 5 boats, you've made 5 possible new "friends" that can tell 5 more people each. My way, you've got 25 friends. The greedy way, you've got 5 friends.
our past differences aside. You couldn't be more right on this one.
If you sell 5 boats, you've made 5 possible new "friends" that can tell 5 more people each. My way, you've got 25 friends. The greedy way, you've got 5 friends.
DONZI and FOUNTAIN have always been, are now, and will continue to be competitors. The buyer for the product is still there although, of course, not in the same numbers. DONZI is shiping pretty high dollar boats every week.
The DONZI and FOUNTAIN world are quite different than my PRO-LINE world. Yes, we did introduce the PRO-LITE line to engage a market that we were not in with rolled gunwale boats, and to keep as many people working as posible. It's worked pretty good.
There is no reason at all that I can see that a new plan with FOUNTAIN wont succeed. Personally, I'm quite happy that Mr. Fountain will still be at the helm. We wish Mr. Fountain and all the very fine employee's in Washington, N.C. success.
We've all had to adjust. I will admit though, the writer that used the word "fledgling" I would enjoy tweaking his nose some. Just a personal glimpse, not a formal company position. We love everyone.
I caught that too , and I bet you would.
When we moved to FL in '70 my dad bought a 24 Dual Console with a 115 Merc (I remember how big we thought that motor was). Can't tell you how many great memories I have of that boat.
Good luck!
__________________
"Destination"
2005 Contender 27 Yamaha F225's
Actually, You DON'T disagree with me. You THINK you disagree with me, but you're mistaken. You're simply experiencing an illusion caused by the limits of your comprehension. -Dilbert
I use a rather expensive 30' boat and also a rather in expensive 20' boat.
One for a purpose, the other for a different purpose.
One is a six figure boat, the other sells in the teens.
So then, one would be entry level the other not?
If I enjoy inshore, flats fishing, lower H.P. use I'm then "entry level"?
No one here is talking about quality of manufacture.
The conversation went to smaller boats, less money.
Smaller, less money does not have to = "entry level".
Exactly, re-read the quote..."Their 23/25's were/are the same high performance fishing boats as the 38's"
Latest development for Fountain Powerboats 
, and I bet you would. 
