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The list just keeps getting longer -- Fountain Powerboats filed for Chapter 11 protection today in the U.S. Bankruptcy Court in the Eastern District of North Carolina. Regions Bank is reporting claims of $19 miliion against the company.
 

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The list just keeps getting longer -- Fountain Powerboats filed for Chapter 11 protection today in the U.S. Bankruptcy Court in the Eastern District of North Carolina. Regions Bank is reporting claims of $19 miliion against the company.
Wonder how this will impact the Brunswick (Baja) deal. The deal with Brunswick had some interesting clauses if Fountain went under.
 

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The list just keeps getting longer -- Fountain Powerboats filed for Chapter 11 protection today in the U.S. Bankruptcy Court in the Eastern District of North Carolina. Regions Bank is reporting claims of $19 miliion against the company.
Do you have a link to an article?

I thought they already were a part of Brunswick? I thought they were taken private?
 

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If memery serves correct.
When Fountain purchased Baja they took on debt from Brunswick to close the deal. Fountain paid very little, but assumed mucho debt. That debt was to be paid by Brunswick, if Fountain did so much volumn with Mercury Marine.
 

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Probably one of the smart ones.
Guess Reggie didn't have enough confidence to loan his personal money to keep the company a float, as he did in the past. Could all be smoke and mirrors, fountain took on a shit load of debt from Brunswick, which was approved by the creditors, and what do you know..................
 

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That's crazy!! 50K on the plus side and $50 million on the down side? Who the heck did that finance job? :mad:
Most likely one of the 6K plus hot boat realtors or loan officers who said EVERYTHING IS JUST FINE, there is no sky falling....:D
 

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most likely one of the 6k plus hot boat realtors or loan officers who said everything is just fine, there is no sky falling....:d
:d:d:d:d
 

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Hey, how come my smilies are jacked!
 

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Fountain Powerboats yesterday filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court in the Eastern District of North Carolina. According to court documents, Fountain will attempt to sell its assets, including the facilities and tooling in North Carolina, as well as brand names and unsold inventory for the Fountain and Baja brands. It expects the assets to sell for between US$6m and US$8m.</p>Fountain said it owes its largest creditor, Regions Bank, US$19.6m. About US$4.3m of the total is for floor-plan loans, while the other US$15.3m was for term loans and a revolver loan. The company reported a loss of US$2.2m in fiscal 2008, and US$8.1m in fiscal 2009.
The company's two biggest shareholders are Cede and Company which owns about 2.2m common shares, and Chairman and CEO Reggie Fountain, who owns about 2.1m common shares.
The company intends to continue operations, according to the court documents. Reggie Fountain told local news sources that only about 10 to 12 workers will remain on the site in the coming weeks. He also expects the backing of new private investors to be in place by the end of the month.
The court documents said Fountain's current operations would not be sufficient enough to support a traditional reorganization. Fountain's filings said "creditors would benefit from the sale of the Sale Assets to a third party, who would then be in a position to infuse working capital, make the necessary capital expenditures and maintain operations for existing and prospective customers, vendors and employees. The Debtors also believe that a forced liquidation of the Sale Assets by a Chapter 7 trustee or by Regions Bank exercising its state law remedies would result in no payment to unsecured creditors."
 

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Hasn't he done this before to fountain? My dad makes forged parts and use to sell to fountain and lost on a big order when reggie ran his company into the ground last time.

If you ask me reggie is nothing more than a con artist. Just like these equity groups who borrowed other peoples money to buy business then leverage the assets 110% based on some un sustainable business model to reward themselves. These people should be put on a black list.
 

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Maybe Reggie could sell some of that bling bling Fountain logo jewelry he's always wearing and pay some of the depts.
 

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Maybe Reggie should go to Washington to see if our gov't wants to get into the boat business too. They could sell GM trucks and Fountains as a package deal.
 
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