Legendary boat builder on brink of bankruptcy

...



9:26 PM Tue 25 Aug 2009 GMT
'Fountain-47-Lightning' Click Here to view large photo
North Carolina's Reggie Fountain, CEO of the legendary 'muscle boat' builder, Fountain Powerboats, has filed for Chapter 11 bankruptcy protection and will attempt to sell off the company's assets.

Reports from the United States suggest the assets would attract US$6 million to US$8 million.

The flamboyant Reggie Fountain, a former three-time World champion for Mercury Marine, has previously struck financial hurdles operating his business, but has always survived.

Court documents reveal the company owes its largest creditor, the US Regions Bank, nearly US$20 million. The debt includes floor-plan loans and term loans.

Fountain Powerboat built speed boats used by law enforcement agencies and at least one former U.S. president, has filed for Chapter 11 bankruptcy and hopes to sell the business as the recession slams demand for expensive speed boats, according to the company founder on Tuesday.

The Washington, North Carolina, maker of high-performance boats for sport fishing and cruising is seeking a buyer for all inventory, according to documents filed Monday in the Eastern District of North Carolina. The proposal is subject to court approval.

'Business has been very, very weak,' said company founder, Chairman and Chief Executive Reggie Fountain, who said that former President George H.W. Bush has bought three Fountain boats. 'Chapter 11 makes it a lot easier to bring in an investor.'

The company is speaking with nine possible buyers, said Fountain. The boats, which travel at as much as 80 to 100 miles per hour, sell for about a quarter of a million dollars. The bankruptcy petition listed only $3 in personal property, and $19.6 million in liabilities.

The bankruptcy court will schedule a hearing to approve sale procedures

Powerboat-World editor Bob Wonders (left) with Fountain Powerboats CEO Reggie Fountain at a recent Miami International Boat Show. - Fountain Powerboats - Bob Wonders Click Here to view large photo

International Boat Industry magazine (IBI) has pointed out that Fountain's current operations would not be sufficient enough to support a traditional re-organisation of the company. It said creditors would benefit from the sale of assets to a third party who would then be in a position to infuse working capital and maintain operations for existing and prospective customers, suppliers and
Fountain's legendary speed - Powerboat P1 World Championship &copy

employees.

Debtors apparently believe that a forced liquidation by any authority, including the Regions Bank, would result in no payment at all to unsecured creditors.




by Bob Wonders




Click on thumbnails to enlarge and find more photos:

Newsfeed supplied by
...

New beach moorings at Rottnest Island

Some sorely needed new moorings installed at Rottnest Island, WA

Comments sought on changes to boat mooring in WA waters

Western Australian boat owners are being given the chance to participate in a review of the use and management of boat moorings in WA.

Sanctuary Cove to open Summer Boating Season with a bang

Sanctuary Cove will welcome an age old tradition, largely recognised by the marine industry around the world, to The Marine Village this weekend with the Opening of the Summer Boating Season.

Marine industry invited to jump on board SCIBS 2015

Exhibitor opportunities open from November 6, 2014

Five Spare Parts That Will Save Your Day on the Water.

We've all seen it, and most of us have done it. You know, that old trick where the wife's standing on the ramp, the kids are in the boat, the car is parked and the day is gorgeous. Where's the key?

Outboard Motor Maintenance Tips

With summer fast approaching, why not use the downtime to give your outboard a once over?

From a time when petrol wasn't $1.70 a litre.

The 1920's and 1930's were an exciting time in the world of speed records on water. This week we came across a lovely picture of an iconic boat from the era, Miss America IX, at the time the worlds fastest boat with a top speed of over 200kmph.

Boaties for dinner: classic Aussie rescue story in the NT

Upturned boat, crocodile infested river, two men cowering in the mangroves and a 'no worries mate' rescue. Is that a classic Aussie rescue story or what!?

Sanctuary Cove Boat show is on this weekend!

QLD's biggest boat show is on again this weekend and tipped to be the biggest in the events history thanks to the coinciding Riviera Festival of Boating.

Wear a life jacket. No really. Wear It

How many times have you heard (or said it yourself) "Ah, I don't need a life jacket! I can swim, and besides, it's calm today." Chances are at least once in your life.