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-   -   Purchasing Fountain Powerboats (https://www.offshoreonly.com/forums/general-boating-discussion/216936-purchasing-fountain-powerboats.html)

racinfever 09-22-2009 08:35 PM

I think the Fountain Owner's Group should rally together in an effort to obtain capital to buy the company!
I think I still have my $49.00 hat!!

99fever27 09-23-2009 12:04 AM


Originally Posted by 99fever27 (Post 2956278)
I hope Hustler does pick it up in the end, but why post it on all the boating sites like its a done deal. If it doesn't go as you plan you may look foolish.:o

:party-smiley-004:

Catmando 09-23-2009 12:07 AM


Originally Posted by racinfever (Post 2958462)
I think the Fountain Owner's Group should rally together in an effort to obtain capital to buy the company!
I think I still have my $49.00 hat!!

F.O.G.? :evilb: :D

vindicator101 09-23-2009 09:02 PM

http://www.witn.com/home/headlines/54606327.html

99fever27 09-24-2009 12:20 AM

http://www.performanceboats.com/html...544#post839544

Reggie Fountain took the time to talk to Performance Boats about the recent events surrounding Fountain Powerboats. He's our conversation.

PERFORMANCE BOATS: There's been some activity lately with Fountain. First, Chapter 11, then the reports that Hustler was interested in acquiring the company, then new reports that Fountain was sold to an investment group. Is that correct?

REGGIE FOUNTAIN: Not yet, no. Nothing’s happened yet. That won’t happen until Oct. 5, and somebody will buy it. Originally it was the bank; now someone else has bought the bank's note. And that note will then be sold on Oct. 5 to the highest bidder, and that person will then own Fountain Powerboats. But it can’t be officially sold until sometime after Oct. 5.

PB: Tell us about what happened with Oxford Securities.

RF: There are several investment groups—maybe as many as a dozen or so—that are looking at that. And so, one of them certainly will be the one that’s already bought the note. And it’s not anybody known in the marine industry: it’s a company called Oxford Securities. And they bought the note. It doesn’t necessarily mean that they’ll own it after the auction; it just means that they are in a good position to own it if they want, since they own the note now. If somebody wants to bid it up, they could bid it up. It doesn’t cost them a lot to up bid it, because they’ve already bought it. They are pretty well in the driver’s seat to own it, if that’s what they want to do.

PB: What is your outlook for Fountain for the next year or so?

RF: I won’t know exactly how that’s going to go until all this is completely done. I’m not in charge of all the things that are happening. I can’t control them. Not having any control, and not exactly sure how they are going to turn out, I’m really not in any kind of position to make any projection into what might happen until I know how it turns out in October. I'll have a pretty good idea who the owner is then, and I’ll know how I can deal with it from that point forward.

PB: Are any boats being produced right now?

RF: Yes, we are still building boats right now. A few. Not many people are building many right now. We actually built quite a few boats over the summer...not many compared to what we used to way back, you know, 15 years ago when things were going good. We’re building 25 to 30 percent of what we built. But you know, we were building more than anybody else in the high performance sports boat market except Baja—and now we got Baja too. Needless to say, sales on all that stuff have gone down dramatically.

PB: Do you think Fountain will make its usual standout appearance at the upcoming Miami Boat Show?

RF: I would think so. I think Fountain would be there, sure. Depending on whoever owns it and however they decide to run it, I’d be surprised if they didn’t show up at the boat show.

PB: What about you personally? What will be your role at Fountain in the years ahead?

RF: Well, I’m in the process now of getting with the people that are investing in the company to see how it will turn out between me and them. It’s mostly from their point of view; their call as to whether they still need to have me helping them. If they do, it’s up to me to decide if I want to do that. Neither one of us has made our minds up except to say I’ve had an awful lot of opportunities dangling out there, at this time, in the event I wasn’t doing what I’m doing right now.

PB: Imagine your life as a free agent. Are you still building boats? Are you racing full time?

RF: Probably consulting with people how to build good boats that go fast. I’m pretty well noted for that, I guess. And I’ve got 315 apartments, a shopping center, a grocery store that will keep me from starving and having to go on the welfare lines. (Laughter) So I think I’ll get along all right on that. So, probably in the boat business, I'll probably be a consultant or something if I weren't working for this company. As Yogi Berra used to say, “It ain’t over 'til it’s over." I gotta just wait and see how it turns out.

pokerrunboats 09-24-2009 03:09 AM


Originally Posted by 99fever27 (Post 2959412)
http://www.performanceboats.com/html...544#post839544

RF: Probably consulting with people how to build good boats that go fast. I’m pretty well noted for that, I guess. And I’ve got 315 apartments, a shopping center, a grocery store that will keep me from starving and having to go on the welfare lines. (Laughter) So I think I’ll get along all right on that. So, probably in the boat business, I'll probably be a consultant or something if I weren't working for this company. As Yogi Berra used to say, “It ain’t over 'til it’s over." I gotta just wait and see how it turns out.



Why is RF not selling his 315 apartments and the shopping center and buys Fountain - or does he think that apartments and shopping center are a better investment and let others loose money in the boat business

My two cent

a boat company in size of Fountain together with Baja can not make money in these days , because the market worldwide is down for high performance boats

You can only survive by giving the market what it is asking for , Cruisers and yachts and family boats in the 30-50 foot range

Only small PBO (Performance Boat only) building companis that only have to find 40-60 clients worldwide can survive

all the others have to concentrate on what the market is now asking for


So if Baja could not make money in the last two years, and Fountain could not make money, why should a new investor be so much more smart than the previous owners and change course by 180 ° - maybe they will need Harry Potter in their new team

Scarab Billy 09-24-2009 06:52 AM

It says alot about the industry outlook in general if Reggie isn't going to put up a fight for it. It's hard for everybody to make money these days...it will take alot of optimism and cash to keep the name going...waiting for things to get better it the performance boat market. Obviously Reggie isn't too excited about the outlook either.

BowenCT 09-24-2009 08:14 AM


Originally Posted by pokerrunboats (Post 2959429)
Why is RF not selling his 315 apartments and the shopping center and buys Fountain - or does he think that apartments and shopping center are a better investment and let others loose money in the boat business

My two cent

a boat company in size of Fountain together with Baja can not make money in these days , because the market worldwide is down for high performance boats


Sounds like you answered your own question.

Interceptor 09-24-2009 09:13 AM


Originally Posted by Scarab Billy (Post 2959484)
It says alot about the industry outlook in general if Reggie isn't going to put up a fight for it. It's hard for everybody to make money these days...it will take alot of optimism and cash to keep the name going...waiting for things to get better it the performance boat market. Obviously Reggie isn't too excited about the outlook either.

I get the same impression from his answers.
ed

VtSteve 09-24-2009 10:13 AM


Originally Posted by TeamShogren (Post 2957781)
The Oxford Investment Group owns the note and unless they get outbid at the auction and decide to sell the note (which is highly unlikely) they will then own the company. You most likely will not see any formal announcements until October 9th from them. This is a very well funded investment company with "ALOT" of experience in boat building. They are very smart and have alot of ideas and more importantly they have a business a plan & motto. It will be a different company in some aspects and the changes they want to make will do nothing more than benefit the end user. As a Fountain only dealer for the past six years I will tell you I could not be more excited about what will be coming, VERY EXCITING, Stay tuned but do NOT expect to hear or see much until October 9th.

Regards,

Team Shogren
www.teamshogren.com
Fountain & BAJA By Fountain
847-336-9037


So the way I read this is, Oxford bought the note from the bank, which probably had the assets as secured collateral. I don;t know when this was done, but they probably bought it at a discount when the bank knew the company was impaired. Reggie loses 51% or basically nothing, Oxford gains the assets for whatever they purchased the note for, and all the other creditors (most anyway), eat what they had. Maybe not as cut and dry as all that, but probably a good basic overview.

Reggie will probably be back, who knows, and in what ownership and/or executive capacity. It would be a similar result to having your home foreclosed on, and having a buddy buy your house back at 30 cents on the dollar.


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