Deadline is set for Fountain bidders

[Davidmnc]

An Oct. 1 deadline has been set for those interested in bidding on the assets of Fountain Powerboat Industries and its subsidiaries, according to documents filed with the bankruptcy court in the Eastern District of North Carolina.

An auction is set for 10 a.m. Oct. 5 in Washington, N.C. Only qualified bidders and the secured lender are eligible to participate. A final hearing to grant the sale motion is scheduled for Oct. 9 in U.S. bankruptcy court.

Reggie Fountain could not be reached for comment Thursday afternoon.

Fountain filed Aug. 24 for Chapter 11 bankruptcy protection.

The company is asking the court for permission to sell "substantially all" of its tangible and intangible assets, including the land and buildings it owns in North Carolina, all manufacturing equipment, all inventory, all contracts with customers, and all records relating to the business.

The sale of these assets could fetch $6 million to $8 million or more, Fountain has said in court filings.

Qualified bids must be at least $6 million and must be accompanied by a deposit of $500,000, according to court documents. They also must be "firm" offers and "not contain any contingencies to the validity, effectiveness, and/or binding nature of the offer."

 

[Dude! Sweet!]

Sounds like a liquidation to me. I'd love to read the reorg plan...

 

[Magic Medicine]

Wow

 

[Baja Fresh]

Sounds like a liquidation to me. I'd love to read the reorg plan...

Sounds like the plan is: sell everything but keep the name and maybe rebuild someday?

Not a huge Fountain guy but it's a shame to see another one go.

 

[Dude! Sweet!]

Sounds like the plan is: sell everything but keep the name and maybe rebuild someday?

Not a huge Fountain guy but it's a shame to see another one go.

Definately a shame. What I was getting at is that they are required to file a plan of reorganization with the bankruptcy court when they seek relief under chapter 11. This smells so much like a liquidation (chapter 7) that I'm curious about how the reorg plan actually reads.

 

[Davidmnc]

The plan is to keep going, but under new ownership/management. With 12 to 15 people working instead of the 250 that were there a couple years ago. I hope it works out.

 

[Steve 1]

The plan is to keep going, but under new ownership/management. With 12 to 15 people working instead of the 250 that were there a couple years ago. I hope it works out.

12-15 People they will need to drastically increase the price of the Boats then and move the operation into a pole barn to cut overhead.

 

[DollaBill]

Hard to believe only 5 years ago I sat with Reggie at dinner and talked about how we (mfg and dealers) could top the $79mm in sales that was done. The factory had over 400 people and the number of boats coming out the door was amazing.

I could never have imagined this would be taking place. No way. Regardless of your opinions of the boats or reggie, this has got to be killing him.

 

[JupiterSunsation]

No one in their right mind would give up 6mm cash for that operation. The biggest obstacle for anyone is the fact that Reggie himself after 30+ years couldn't make it work any longer so how could anyone else be successful.

Remember 6mm @ 6% in muni bonds would return 360K a year tax free sitting on your couch, that is $1,000 a day for you hourly types! I don't care if someone was sure they could make 1mm a year building boats the risk is not worth the return.

 

[Steve 1]

No one in their right mind would give up 6mm cash for that operation. The biggest obstacle for anyone is the fact that Reggie himself after 30+ years couldn't make it work any longer so how could anyone else be successful.

Remember 6mm @ 6% in muni bonds would return 360K a year tax free sitting on your couch, that is $1,000 a day for you hourly types! I don't care if someone was sure they could make 1mm a year building boats the risk is not worth the return.

I agree plus the market is awash with that stuff unless they create a new line of boats, The smaller custom builders will eat them up and are are the future from what I see!

 

[DollaBill]

Disagree. I think 6MM is reasonable and there is a place for them. interest on the 6MM is about 5-7K/mo/MM (call it 35k). It can work even on a custom basis. Just have to keep staff tight and not spend any money on advt/sponsorships etc.

 

[Ratickle]

If you weren't getting the land, buildings, and inventory 6mm would be high. I have to believe that's a reasonable fire sale value if it really includes all of those assets.

 

[JupiterSunsation]

If you weren't getting the land, buildings, and inventory 6mm would be high. I have to believe that's a reasonable fire sale value if it really includes all of those assets.

I would think the waterfront factory was exempt from the sale.......unless that complex is not worth much but from the aerial pics on their website it looks expensive!

I think their expectation of 6mm is for Fountain boat stuff, molds/equipment/tooling etc.....which I think is insanity

 

[boatme]

wow

 

[phragle]

if they own the property, it's an asset, and would be sold. unless Reg owns it and leases it to fountain......

 

[Hauling Trash]

Hard to believe only 5 years ago I sat with Reggie at dinner and talked about how we (mfg and dealers) could top the $79mm in sales that was done. The factory had over 400 people and the number of boats coming out the door was amazing.

I could never have imagined this would be taking place. No way. Regardless of your opinions of the boats or reggie, this has got to be killing him.

David Knight did a great job.................... NOT:26:

 

[DollaBill]

Holy ****! do you remember that day??? I do. I'm not even gona talk about it publ but you remember. That was the beg of the end. What a douchebag he was/is.

 

[DollaBill]

and i was asked to take him to look at some property by boat. dont get me started

 

[db71]

So the question I ask is could reggie turn around and buy this maybe by using someone else bidding or even directly?

 

[Expensive Date]

So the question I ask is could reggie turn around and buy this maybe by using someone else bidding or even directly?

Yes