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Purchasing Fountain Powerboats

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Old 10-01-2009, 07:52 PM
  #181
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Originally Posted by BUIZILLA View Post
if the auction is on the 5th...

why the info release wait until the 9th?

and... drum roll.... what if Oxford decides NOT to sell the note?

drum roll again.... and if the note does sell for BIG money, can Regions come back and declare a intentional frauded BK and file suit for the balance?

the bilge pump is still running...

The Auction .... taking of bids so to speak is on the 5th.

The Wait .... is because the Judge in the BK Court has the final say, and that hearing is on the 9th.

Oxford at this point owns the note, having purchased it from Nations Bank, they are only a creditor at this point, not the owner of Fountain Powerboats.

Selling the note is not their choice to make, they are a creditor, and the BK Judge will make the final decision.

Regions Bank chose to sell the note they held. They are out of it at this point, unless they hold additional paper with Fountain.

Nothing is likely to change on this deal until October 9th at the point the BK Judge makes his decision on the future of Fountain Powerboats. Basic Biz, Pretty Simple!
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Old 10-02-2009, 03:02 AM
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Originally Posted by PARADISE ISLAND View Post
I'm not a lawyer but if buying a note from a firm going bankrupt without a stipulation only puts you with the other people owed money!!
I think is possible that Oxford believes in the long term, not short term, prospects of the marine industry, and therefore Fountain in particular. The worst that could happen is liquidation, and the raw bare assets are worth at least $6.5M in any non-depression economy. I don't think most people believe Bush has totally destroyed the economy forever. It will recover. And the companies that have major mind share, like Fountain, will be the ones that spring back. Remember that Fountain gets by FAR the most hits on boattrader. People want Fountains. The demand is there, eventually the ability to purchase will return.

Remember than just because Oxford bought the note for $6.5M, that does not mean Fountain only owes $6.5M. They still owe the whole nut, and the interest on that whole nut. So if Fountain continues as a going concern, its got to pay back that debt. If its liquidated, then Oxford gets paid the first $25M or so of whatever is bid at auction.

So there is no question that Oxford has thrown a monkey wrench into the situation. Clearly, the bank was willing to walk for a fraction, and they did -- they sold the note to Oxford.
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Old 10-02-2009, 07:54 AM
  #183
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Bush has totally destroyed the economy forever.
What? Are you serious?
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Old 10-02-2009, 08:08 AM
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Originally Posted by PARADISE ISLAND View Post
I'm not a lawyer but if buying a note from a firm going bankrupt without a stipulation only puts you with the other people owed money!!


Oxford purchased the note from Nations Bank not from Fountain Powerboats. So at this point in time they are a listed creditor the same as the bank would be if they still held the note.

I believe that Nations Bank had several loans that they held with Fountain, secured by different assets. Some involved the property and plant, some I believe were secured by floor planed inventory. There are some dealers advertising dealer repo boats for sale now, bank wants them gone comments. Makes me think that Oxford may not have purchased all of the notes, possibly only those hooked to the property and plant.

Again it's all just a guessing game until the Judge in this case makes a decision on the 9th of October.
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Old 10-02-2009, 11:22 AM
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A hearing is set for Monday morning on Fountain Powerboats' motion asking to postpone the scheduled sale of its assets, though a California-based investment group is opposing that motion.

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An auction had been scheduled to take place next week.

Fountain filed Aug. 24 for Chapter 11 bankruptcy protection. In its filing the company asked the court for permission to sell "substantially all" of its tangible and intangible assets.

However, in court documents filed this week in U.S. Bankruptcy Court in the Eastern District of North Carolina, Fountain says that on Sept. 17, creditor Regions Bank sold its note to FB Investments LLC. FB Investments is a corporation formed by the principals of The Oxford Investment Group for the purpose of acquiring the Regions Bank note, according to Selwyn Isakow, chairman of The Oxford Investment Group.

FB Investments is interested in acquiring Fountain's assets, according to court documents, saying FB intends to "credit bid the Region Bank indebtedness at the auction; however, one effect of the assignment of the Regions Bank indebtedness to a potential bidder has been to chill the bidding process and discourage other potential bidders."

Fountain reported in the last few days that the company received an alternative proposal from Liberty Associates in which Liberty would provide financing that would allow Fountain to continue operations and fund a proposed agreed plan of reorganization. Liberty, as part of the deal, would keep Reggie Fountain on board as president of the company.

"The debtors believe that this alternative proposal from Liberty would appear to offer other creditors in this proceeding at least some opportunity to receive a distribution on allowed claims and thus may be in the best interest of the debtors' estate as compared to the proposed sale," Fountain said in court documents.

FB Investments, however, filed papers Thursday asking the court to reject Fountain's motion to postpone the auction, calling it a last attempt of "founder Reggie Fountain to try and retain control of the company he stewarded into insolvency."

"On Sept. 28, 2009, Reggie Fountain states he did not want to work with FB Investments if it purchased the company; two days later, debtors seek to abort the sale for the 'best interests of the creditors,' " FB noted in court documents.

FB also asserts Fountain has not provided a basis for canceling the sale process and that the benefits to canceling are "highly speculative and extremely unlikely to occur; the harm to FB Investments is real and substantial."

"[The] bare bones, highly unusual ex parte motion seems to all appearances to have been triggered by Reggie Fountain's attempts to secure his own personal advancement, without a credible chance of benefitting the creditors," FB said in court papers.

In related news, a Committee of Unsecured Creditors was appointed. Representatives from Composites One, Textron Financial Corp., Speed Boats of Texas (dba Legend Marine Group), and Dr. Jon C. Fisher were named to the committee.
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Old 10-02-2009, 11:30 AM
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Anybody know who Dr. Jon C. Fisher is?
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Old 10-02-2009, 02:27 PM
  #187
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"[The] bare bones, highly unusual ex parte motion seems to all appearances to have been triggered by Reggie Fountain's attempts to secure his own personal advancement, without a credible chance of benefitting the creditors," FB said in court papers.
Reggie's always at it.
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Old 10-02-2009, 04:07 PM
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doesn't appear to be a lot of love between Reggie and The Oxford Group
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Old 10-02-2009, 05:06 PM
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I am no fan of Fountain the Man or the boat but he has done a ton for the sport and he builds a fast boat. So if he lost Fountain he would have to start over building " Reggie Boats ". Now for that company to do well the boats are going to have to be better than what he builds now, so he would be doing even more for the Sport, Right? Now at his age starting over is not going to be easy but he has a huge ego so I think he could do it if he wanted.
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Old 10-02-2009, 05:40 PM
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doesn't appear to be a lot of love between Reggie and The Oxford Group
Probably not..We have a very old funiture company here in Norwalk..it too was family owned for over a hundred years. It too filed banruptcy...the assets were sold to a group of investors who renamed the company and started over as a new company with no debt. Sound familiar? Oh and the bank turned the family out.
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