Long live the BEAK!

of course
but other brands would name those boats 30 and 35 :lolhit:

no,it just means that other boat mfg,s just need to do more r/d on there hull to be faster.

Comment by a specialist
 

From an attorney office that specializes in providing legal services for suppliers and other unsecured creditors.

http://www.burbageweddell.com/2009/1...tion-approved/

Fountain Powerboats Bankruptcy - 363 Sale Credit Bid Rejected, Proposed DIP Financing Motion Approved

Following five and a half hours of testimony and final argument, Judge Randy D. Doub of the Bankruptcy Court for the Eastern District of North Carolina ruled on October 9, 2009 that the proposed Section 363 sale credit bid of Oxford Financial Group (”Oxford”) for the operating assets of Fountain Powerboat Industries, Inc. (”Fountain Powerboats”) was not in the best interest of the Debtor’s estate. The court instead approved a motion for Fountain Powerboats to obtain debtor in possession financing from Liberty Associates for an amount up to and including $1.5 million.

The rulings were good news for suppliers and other unsecured creditors. There remains a reasonable prospect that Fountain Powerboats will reorganize and emerge from bankruptcy. There also remains the possibility for a plan of reorganization that might provide $1 million to be divided among the unsecured creditors plus the shared recovery from any bankruptcy preference and other transfer avoidance actions.
As indicated in the prior post, however, the amount of the unsecured creditor recovery likely will be low. Oxford acquired the approximate $19.5 million secured loan held by Regions Bank for only $6.5 million creating a likelihood that $13 million will be added to the previous $1.8 million in pre-petition general unsecured trade claims. If this reallocation of secured debt number holds up, the percentage of the general unsecured claims held by trade debt will be less than 12 percent. The unsecureds are looking the real possibility of a less than 7 cents on the dollar recovery from the $1 million to be put in the general unsecured creditor pot. But that is 7 cents on the dollar higher than that offered by Oxford.

This case just reinforces lessons for unsecured creditors that have been taught by numerous recent 363 sales. The case again demonstrates the chilling effect on the 363 sale bidding process when a pre-petition secured loan is acquired in anticipation of the sale and at a substantial discount. The case also again demonstrates the need to accelerate the appointment and ramp up of the official committee of unsecured creditors in the case of these blitzkrieg 363 sale tactics. The creditors committee in this case was a non-factor because it simply could not get geared up fast enough.

The real lessons in this case are for private equity distressed opportunity investors. This is a case study on what not to do to close a section 363 sale credit bid. This is not to detract from the substantial skill shown by Debtor’s counsel, John A. Northen of Chapel Hill, North Carolina, but the Debtor and the white knight DIP lender were hugely aided by the credit bidder’s gross mis-steps.

We could go on for pages about what the credit bidder did wrong. But this site is for suppliers and other unsecured creditors. All that should be said here is “Good Luck Reggie.”

Sure looks like Reggie is a very, very smart man. By getting a relatively very small amount of money from Liberty, he has reduced his debt load dramatically, tremendously improved the terms on the debt, and has retained control over his company.

I am impressed!

Excuse me, I am an engineer, what does this mean exactly? How much will fountain have to pay back to Oxford? Is it based on the price they paid for the secured loan or the original value?

In a prior post it was stated that Fountain had been ordered by the Court to begin payments of principal and interest to Oxford in the neighborhood of 30K per month on the note.

From this current post it would seem that the 6.5 M would be secured by assets of FPB and the remaining 13M goes into the unsecured pile where they might get it, might get part of it, might get none of it. Way I see it right now is Oxford will get 360K +/- per year out of their 6.5M cash investment. Bearing in mind that amount is inclusive of principal and interest, does not look to be a real killer deal to me, looks like it backfired on Oxford.

Would seem to me that the good ol' southern boy, his very sharp good ol' southern boy attorney, and the good ol' southern boy Judge put it to the high brow city slickers. ( forgive the southern analogy )

Now Reggie needs to sharpen his pencil, park the ego, take full advantage of this chance he has been given, and work to pull this company back into profitability.

the term is Good ol' boy.or good ol' boys

I agree with Ragged Edge.

I think it sounds like Oxford may get nearly a million dollars (about 93% of the million that may be made available to pay all unsecured creditors), and then Oxford gets 30K per month (360K per year) for some number of years until the 6.5 million they paid Region for the note is paid off.

What's interesting is that the Oxford strategy has become a common strategy for people sniping to buy distressed companies.

Makes me wish I got Business and Law degrees instead of Computer Science... hey, sounds like Reggie's background. Perhaps its not a fluke that Reggie came out on top again.

Y'all note that I do stand corrected!

Good Ol' Boys most often will come out on top of the chit pile!