Fountain tries to stop sale to FB Investments

[jeffbare]

From Trade Only this morning.

Fountain Powerboat Industries and its subsidiaries filed paperwork Thursday rejecting FB Investments' bid to buy the company.

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The report of sale was filed in U.S. Bankruptcy Court in the Eastern District of North Carolina in advance of today's final hearing on the sale.

That hearing was set to begin at 9:30 a.m. The outcome was unavailable by Soundings Trade Only's deadline.

"The debtors do not support confirmation of the sale to FB Investments as the debtors believe, exercising their reasonable business judgment, that the proposed financing and plan supported by Liberty Associates, L.C. would provide a greater benefit to creditors and any sale pursuant to the bid by FB Investments would not be in the best interest of the estate," Fountain said in its report.

"Section 7(c) of the sale procedures permits debtors to reject, at any time before the entry of an order ... any bid that in the debtor's sole discretion, is contrary to the best interests of the debtors," the report adds.

Fountain had previously asked the court to postpone today's final hearing on the sale, but that motion was denied.

FB Investments' credit bid of $8.75 million was unopposed.

FB Investments is a corporation formed by the principals of California-based Oxford Investment Group for the purpose of acquiring the Regions Bank note on Fountain.

FB said in court papers it planned to "utilize debtors' business as a platform to develop a broad-based branded boatbuilding business headquartered in Washington, N.C., with growing local employment utilizing local resources."

However, it was not willing to offer company founder Reggie Fountain the position of CEO. Liberty Associates, however, said it would retain Reggie Fountain as head of the company.

 

[phragle]

why do we not have an official serious offshore reporter sitting inside the courtroom or on the steps of the courthouse for this??? where is that damn penguin?? probably napping in th back of an RV somewere pretendin to work.......

 

[Slandrew]

Dateline Kissyursistr, N.C. 10/9/09

North Carolina bankruptcy surrogate, Hayden Baitcaster, ruled against embattled boat manufacturer, Reggie Fountain, and his bid to reclaim the company that bears his name. Fountain Powerboats is now officially in the hands of an investment banking arm of Oxford Investments. The division created for this purpose "FB" (reportedly an acronym for "Fountain Bustout") Investments will take full control of the company immediately. Reggie, who apparently barricaded himself in his trophy filled office at Fountain Powerboat's headquarters, was heard by reporters outside the windows sobbing hysterically and screaming "Oh the Humanity". Earlier witnesses described the former Chairman and CEO as "actin' kinda weird". According to his long time assistant, Cynthia Kneescraper, "He kept mutterin' stuff like "They can't do this....don't they know who I am????" she added. "He didn't even want me to give him his morning neck massage and pep talk.All he kept saying was "Peter Hledin and Carl Kiekhaefer get all the credit...and I'm the one who walks on water!!!!! It ain't fair!!!""

When questioned about the so called "pep talk", she became a little uneasy but offered:"Y'know, like Reggie told me that all them big time executives get from their assistants....stuff like: "Ooh daddy your so big and handsome and the greatest race boat builder/driver on the planet....You can satisfy any woman on earth...stuff like that. Doesn't every big guy like Reggie and the chairmens of other comp-nies get that each day???"

Also on hand for the hearing were various Fountain Powerboat dealers who were all amazed to learn that without a proven cash source and an approved profit making plan, there was no reason for Fountain to continue. "How can this be????? " shouted Southwest Fountain dealer Harry Byabridge and his New England counterpart Damon Naivite'. " Reggie is the ONLY builder we would even consider buying a boat from". Asked if they knew any other builders, both dealers replied almost in unison, "Reggie told us they were all dead....and we never question Reggie!"

Another troubling picture is emerging as a background to this story. Long thought to be an imitator of Elvis Presley, whose carreer also was riddled with tragic setbacks, Reggie sported jet black hair and a pompadour. A tour through his office yesterday by this reporter unearthed a cache of books and magazine articles that were not about Elvis, but rather were documents surrounding the life of infamous evangelist(and fellow jet black hair afficionado), Jim Jones. When asked about this directly, the few remaining employees at the plant immediately offered the reporter some Kool Aid, which apparently was liberally dispensed to employees, vendors, customers, and dealers for years.

In a related interview, Judge Baitcaster was asked why he found in favor of the "outsiders" as they were called sarcastically during the proceedings by the chanting throngs of semi delirious, Fountain supporters. "Well" the judge replied in a slow, deliberate drawl, "My brother in law, Billy Jack, owns a fibreglass distributor business and his biggest customer was ol' Reg...... every deal was done southern style...with a handshake y'know. Seems like Mr. Fountain done left Billy Jack with shaky hands and an unpaid invoice for $300,000..........It's a damn shame we don't hang some folks in the town square like we used to back when men were men and be'in from the south meant sumpthin."

Further on this developing story at 11........

Sympathetic Jones, MSLSD Financial reporter

Did the secratary call him Donzee or Regzee!:willy_nilly:

 

[wannabe]

A bankruptcy judge could decide what happens to what was once one of Beaufort County's largest employers.
Posted today in WITN website
"A hearing in underway in Wilson to determine what's next for Fountain Powerboats.


The company filed for chapter 11 protection a month and a half ago and its assets were sold at auction earlier this week.

Reggie Fountain spent more than an hour on the witness stand during the hearing. He said in 2006 they had 450 employees and had their best year ever. Today he said the company is down to about 30 workers.

Fountain is asking the bankruptcy judge not to approve this week's auction, and instead approve a financial plan to keep to company operating.

FB Investments bid $8.75 million for the bank note was unopposed on Monday. FB was formed by Oxford Investment Group so it could acquire the Regions Bank note on Fountain."

Essentially Reggie is asking the judge to disqualify the 363 auction bid by FB.

Reggie has litlle chance of being succesfull in this as the judge would really have to find exceptional circumstances to nullify the sale.

Wannabe

 

[phragle]

ok...the day is done...so what happened???

 

[Magicfloat]

Looks like Reggie won one more time. www.WITN.com

 

[Bullhead]

Looks like Reggie won one more time. www.WITN.com

Wow you are quick...my buddy just called me 30 minutes ago from the courtroom....Reggie should be in the cat business because he sure has nine lives

 

[FastTimes]

WoW,, that damn Reggie!

 

[Magicfloat]

Love him or hate him,he put 25 years of his life into Fountain. Glad he won. Now we need Scott Shogren to comment.

 

[phragle]

Wow you are quick...my buddy just called me 30 minutes ago from the courtroom....Reggie should be in the cat business because he sure has nine lives

Are you insane????? Reggie is the cat killer...if he went into the cat buisness, that would be tantamount to commiting suicide! he would have to kill himself!!!!

 

[Jassman]

Love him or hate him,he put 25 years of his life into Fountain. Glad he won. Now we need Scott Shogren to comment.

I say Shogren for President and .. and Reggie as VP

 

[Magicfloat]

I am also happy for Scott. He built a gorgeous new facility based on only Fountain products. He has to be happy tonite.

 

[Lubejobs42]

I agree, Scott is a great guy. Without a doubt he should be "man". He has the class and personality people like and respect unlike others that are Rude, crude and obnoxious!

 

[boatme]

hmmmm and the beat goes on

 

[Jassman]

hmmmm and the beat goes on

thats... so 80's:sifone:

 

[Ratickle]

I never would have guessed that was a possible outcome in a court of law on a bankruptcy hearing. Could you imagine if you were one of the Oxford investors who purchased the note? You may get $30,000 a month from a company who has no money, and very little chance of making any, run by a management team who couldn't keep it running in the first place. All for your piddly $6 mill + investment....

I'd appeal instantly.

 

[phragle]

I never would have guessed that was a possible outcome in a court of law on a bankruptcy hearing. Could you imagine if you were one of the Oxford investors who purchased the note? You may get $30,000 a month from a company who has no money, and very little chance of making any, run by a management team who couldn't keep it running in the first place. All for your piddly $6 mill + investment....

I'd appeal instantly.

Oxford bought the note (if I remember right 19 mil, paid 6) for a little over 31 cents on the dollar, hoping to clean up. they made a bet and lost. No need to feel sorry for them Rat... they can work just like any other collection agency. If Liberty is smart, they will offer half that to settle...

 

[VtSteve]

Liberty must have some plan to make some money. At the very least, they can fund the payments and overhead and wait this out. There's always the real estate. Oxford has a $19 million dollar note, and an order to enforce payment. If Fountain can't make the payments, at some point, it'll be back to the first stage.

Liberty's smart move would be to get this business organized, firm up the business model, and wait until spring. It also buys Liberty and RF some time, which is probably what they wanted. I'd rather deal with this business next summer than this winter, and no sense losing it if you can hang on one more time.

Oxford's still in a pretty good position, as far as vulture capitalists go. It's not uncommon to float a bet out there for 2-4 years awaiting outcome. It is uncommon to start receiving payments right away. Advantage Oxford in the first inning.

 

[Ratickle]

Liberty must have some plan to make some money. At the very least, they can fund the payments and overhead and wait this out. There's always the real estate. Oxford has a $19 million dollar note, and an order to enforce payment. If Fountain can't make the payments, at some point, it'll be back to the first stage.

Liberty's smart move would be to get this business organized, firm up the business model, and wait until spring. It also buys Liberty and RF some time, which is probably what they wanted. I'd rather deal with this business next summer than this winter, and no sense losing it if you can hang on one more time.

Oxford's still in a pretty good position, as far as vulture capitalists go. It's not uncommon to float a bet out there for 2-4 years awaiting outcome. It is uncommon to start receiving payments right away. Advantage Oxford in the first inning.

You may be correct, but I'm not seeing it. If I were part of the purchasing group, I would have instantly started to dissect the assets and selling them off for a quick return to even, with some assets still held for down the road, but no current out of pocket. I think, looking at the assets, the pieces are worth much, much more than the whole.

 

[MikeyFIN]

thats... so 80's:sifone:

these times are actually a rerun of the late 80´s early 90´s...