Fountain Files Chapter 11 Bankruptcy
08-25-2009, 02:48 PM
#101
08-25-2009, 03:33 PM
#106
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They will combine Foutain, Baja, & Checkmate.
The new company will be Beckmountain or Beakmate.
(Note to Purple Hornet aka Big Red or whatever name you go by: This was posted for fun purposes only. No need to post it on the other board as a fact)
The new company will be Beckmountain or Beakmate.
(Note to Purple Hornet aka Big Red or whatever name you go by: This was posted for fun purposes only. No need to post it on the other board as a fact)
08-25-2009, 04:18 PM
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08-25-2009, 05:03 PM
#108
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Which ever way this gos, I'm sure Fountain will not be the same as it was. In our couple of trips to the factory, I never met anyone that wasnt glad to help or take time to explain. Reggie may be the picture that comes to mind when you say Fountain Power Boats, but you folks at the factory are really the heart and soul of Fountain. Its just a damn shame its come to this. Good luck and thank you for all your hard work.
08-25-2009, 05:10 PM
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It's amazing how the banks have gotten nervous during the government "stress tests". The Fed is lookin into all the bank's that have taken bailout money...and that all trickles down to the smaller banks ..and they are nrevous. we had a 100 year old furniture company here that the bank (Comerica) got nervous and called the loans on after forcing the company into trouble by stalling on loans for operations. The company only needed some time and help to get over this "speed bump" we are all in now. So I wish Fountain good luck, and can easily see how this happens right now...If the customer can't get loans and the company can't get loans...problems start. Re-structuring thru chapter 11 makes sense for them. Good luck Reggie
08-25-2009, 06:31 PM
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http://www.reuters.com/article/merge...20606020090825
http://www.tradeonlytoday.com/home/4...ountain-assets
Well, at least the picture is a lil clearer now...
They list total assets (including inventory at full MSR prices) for the 4 total entities at $25,300,003. They list total liabilities for the 4 entities at $78,600,000 (minus $4 mil if they don't default on the agreement to Brunswick, as they are about to do in ch 11). Realistically, the assets are worth probably $.50 to $.70 on the $1 when liquidated, especially given the current economic situation we are all in. So in essence, they are upside down about $60,000,000, with plummetting revenues. IMO, you can't sell enough boats in a short time period to stave off the creditors, so a liquidation is probably coming after they announce that they "almost" secured a deal to emerge from Ch 11. I just can't see anyone buying $60 mill in debt, let alone paying cash for it (since extending credit isn't gonna happen, every bank wants to get paid back, not eat more bad loans). Most likely, their assets (inventory) will be frozen by the trustee and then sent to a liquidator to recover some of the secured debt.
The workers and dealers are the ones who are really getting screwed here.
http://www.tradeonlytoday.com/home/4...ountain-assets
Well, at least the picture is a lil clearer now...
They list total assets (including inventory at full MSR prices) for the 4 total entities at $25,300,003. They list total liabilities for the 4 entities at $78,600,000 (minus $4 mil if they don't default on the agreement to Brunswick, as they are about to do in ch 11). Realistically, the assets are worth probably $.50 to $.70 on the $1 when liquidated, especially given the current economic situation we are all in. So in essence, they are upside down about $60,000,000, with plummetting revenues. IMO, you can't sell enough boats in a short time period to stave off the creditors, so a liquidation is probably coming after they announce that they "almost" secured a deal to emerge from Ch 11. I just can't see anyone buying $60 mill in debt, let alone paying cash for it (since extending credit isn't gonna happen, every bank wants to get paid back, not eat more bad loans). Most likely, their assets (inventory) will be frozen by the trustee and then sent to a liquidator to recover some of the secured debt.
The workers and dealers are the ones who are really getting screwed here.
