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Fountain/Mercury update

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Old 07-24-2003, 10:35 AM
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TulsaLarry
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Default Fountain/Mercury update

Fountain has completed their filing with the S.E.C. in regard to their financing arrangement with Bank of America and Brunswick. It appears that all new fountains will be strickly Merc boats and Brunswick has the opportunity/possibility of becoming the majority shareholder in Fountain. In addition, Reggie has pledged his stock to Brunswick.

Here are some excerpts from the filing:
http://www.sec.gov/Archives/edgar/da...022312/d8k.htm

In related transactions, we have entered into an agreement with Brunswick under which it will supply to FPI, and FPI will purchase from it, during the term of the agreement, all of FPI’s requirements for marine engines and other power components used in boats manufactured by FPI. We and Mr. Fountain also have given Brunswick certain rights to purchase, in the future, shares of our common stock (generally at a price to be determined at the time of exercise) that could amount to a controlling interest. Those rights do not become exercisable until the earlier of July 1, 2007, or the repayment in full of FPI’s obligations under the financing arrangement. To the extent that Brunswick’s obligation under its guaranty exceeds $14.7 million, Mr. Fountain has pledged his shares of our common stock to Brunswick as additional collateral.

Agreement with Brunswick:
http://www.sec.gov/Archives/edgar/da...12/dex1015.htm

Last edited by TulsaLarry; 07-24-2003 at 11:42 AM.
 
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Old 07-24-2003, 11:09 AM
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Damn, that sucks. Pretty soon they'll be selling Fountain's alongside Bayliner's and SeaRay's.
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Old 07-24-2003, 11:28 AM
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Default SECURITY AGREEMENT BETWEEN FOUNTAIN POWERBOATS AND BRUNSWICK

http://www.sec.gov/Archives/edgar/da...12/dex1016.htm

A. Types of Collateral (check as applicable)



x Accounts: Any and all accounts (including, but not limited to, health-care-insurance receivables) and other rights of Debtor now existing or hereafter arising out of the business of Debtor.

x Inventory:
x Blanket Lien: Any and all of Debtor’s goods held as inventory.
x Equipment:

x Blanket Lien: Any and all of Debtor’s goods held as equipment. Some of such goods are or may become fixtures on Debtor’s real estate in Beaufort County, North x Fixtures:

x Blanket Lien: Any and all of Debtor’s goods held as fixtures.
x Instruments and/or Investment Documents:

x Blanket Lien: Any and all of Debtor’s instruments, documents, investment property and other writings of any type.
x General Intangibles:

x Blanket Lien: Any and all of Debtor’s general intangibles.
x Deposit accounts: All of Debtor’s right, title and interest in and to any deposit account together with all interest, monies or proceeds due or to become due thereunder, and any and all additional or renewed deposits of said monies or proceeds. D. All other personal property of Debtor.


I'd say that about covers everything except for Wyatt and any grandchildren.
 
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Old 07-24-2003, 11:33 AM
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Wow ! Everything including the dust on the floor..
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Old 07-24-2003, 11:49 AM
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Desperate times call for desperate measures. I hope he can keep it afloat. No pun intended. It would suck to see a major builder go under. It would be bad for the boating community, the employees and the town where Fountains are built.
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Old 07-24-2003, 12:42 PM
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Quote:
Originally posted by Shane
Desperate times call for desperate measures. I hope he can keep it afloat. No pun intended. It would suck to see a major builder go under. It would be bad for the boating community, the employees and the town where Fountains are built.
I don't totally agree. Fountain has rumored to struggle for years, layoffs sometimes not so great customer service. It may improve some facets of the operation and if Lake X closes this may be the new lake X.

Time will tell and if it is a takeover it is better than a liquidation a/k/a Apache, what, it took about 10-12 years to get that settled?
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Old 07-24-2003, 02:07 PM
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This is what happens when companies grow too large and the economy takes a dip.
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Old 07-24-2003, 02:27 PM
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they should be fine it seems high dollar boats are picking up around here,people who have money are still spending it.
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