Fountain Bankruptcy more details
09-02-2009, 11:26 AM
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Fountain Bankruptcy more details
Article from Powerboat Magazine.
One of the most well known boatbuilders in the industry, Fountain Powerboats filed for Chapter 11 bankruptcy protection on Monday, Aug. 24, in the U.S. Bankruptcy Court in the Eastern District of North Carolina
Just two months after hiring an investment banker to seek additional capital, the Washington, N.C.,-based company will attempt to sell its assets, which includes its 65-acre manufacturing facility and tooling, along with the unsold inventory and names for the Fountain and Baja brands. Chairman and CEO Reggie Fountain said the company’s assets are expected to fetch between $6 million and $8 million.
According to court documents, the company says it has $3 in assets listed under personal property. It lists $1 each for Baja by Fountain, Fountain Dealers’ Factory Superstore and Fountain Powerboats. Its liabilities are listed as $19.6 million, which it owes to Regions Bank. More than $4 million of the total is for floor-plan loans, while the other $15-plus million was for term loans and a revolving loan. The company reported a loss of $2.2 million in fiscal 2008 and $8.1 million in fiscal 2009.
Reggie Fountain told local news sources that only 10 to 12 workers will remain at the plant in the coming weeks, and that he expects the backing of new private investors to be in place by the end of the month. That is if the bankruptcy court approves the sale procedures (a hearing has not been scheduled).
The company asked the court to quickly hear the plan, stating in court documents, “If the sale motion is approved and a sale is consummated as proposed, any plan of reorganization will be perfunctory in scope. If the sale motion is not approved, or a sale is not confirmed and consummated, the debtors may pursue a more traditional plan of reorganization or a plan of orderly liquidation.”
One of the most well known boatbuilders in the industry, Fountain Powerboats filed for Chapter 11 bankruptcy protection on Monday, Aug. 24, in the U.S. Bankruptcy Court in the Eastern District of North Carolina
Just two months after hiring an investment banker to seek additional capital, the Washington, N.C.,-based company will attempt to sell its assets, which includes its 65-acre manufacturing facility and tooling, along with the unsold inventory and names for the Fountain and Baja brands. Chairman and CEO Reggie Fountain said the company’s assets are expected to fetch between $6 million and $8 million.
According to court documents, the company says it has $3 in assets listed under personal property. It lists $1 each for Baja by Fountain, Fountain Dealers’ Factory Superstore and Fountain Powerboats. Its liabilities are listed as $19.6 million, which it owes to Regions Bank. More than $4 million of the total is for floor-plan loans, while the other $15-plus million was for term loans and a revolving loan. The company reported a loss of $2.2 million in fiscal 2008 and $8.1 million in fiscal 2009.
Reggie Fountain told local news sources that only 10 to 12 workers will remain at the plant in the coming weeks, and that he expects the backing of new private investors to be in place by the end of the month. That is if the bankruptcy court approves the sale procedures (a hearing has not been scheduled).
The company asked the court to quickly hear the plan, stating in court documents, “If the sale motion is approved and a sale is consummated as proposed, any plan of reorganization will be perfunctory in scope. If the sale motion is not approved, or a sale is not confirmed and consummated, the debtors may pursue a more traditional plan of reorganization or a plan of orderly liquidation.”
