Setback for Reggie?

[Steve 1]

I think we should give this topic a rest. The man is in the fight of his life and no matter what we post on this website, nothing on here will affect the outcome. Let's simply back away from this until it is decided in one way or the other. This issue is pitting friend against friend...and frankly it's not worth it.

The boating industry is in a shambles as are most of the other recreational based supply chains. There are much larger forces at play here that threaten our entire economic fabric and lifestyle. Why waste time on a tree when the forest is the story?

T2x

Exactly, Nice Post .

 

[Bgchuby01]

So with liberty owning both Donzi and Fountain I wonder if they will combine the factory to save money. At this years Miami Boat show a ZR may show up with a beak

 

[Offshoredrillin]

I think we should give this topic a rest. The man is in the fight of his life and no matter what we post on this website, nothing on here will affect the outcome. Let's simply back away from this until it is decided in one way or the other. This issue is pitting friend against friend...and frankly it's not worth it.

The boating industry is in a shambles as are most of the other recreational based supply chains. There are much larger forces at play here that threaten our entire economic fabric and lifestyle. Why waste time on a tree when the forest is the story?

T2x

Give it a rest? because you say so? You have some of the longest threads against him and his company. So why bury your head in the sand now? so the industry being in shambles has nothing to do with fountain as a company and its predatory practices and deceit to it's dealers? what other manufacturer other than Concept went Factory direct and deliberately screwed its own dealer network. The company's antics have a direct effect on why good people have a hard time getting loans for performance boats, and like it or not the values on everyone's boats have plummeted the same as real estate. looking in the classified, fountain has a third more units for sale than its closest market competitors.Fountain helped create the bubble, as Matt said there is nothing wrong with civil discussion on opposing views.

 

[Magic Medicine]

With all due respect guys,

Make fun. Have fun. Tease and kid. You go big in public, you fail big in public. Fair enough.


But this is nothing to celebrate. Production-boat building, and the associated pricing that comes with it, isn't "over" per se. But what will take its place in the future? Oh my. Something you can't imagine.

What blows me away about all of the ... I don't know what to call it ... vitriol now directed at Reggie Fountain is really simple: What did he do to you?

What? You're angry at his hair? Or that he had a pretty young wife? Or that, like your favorite pro athlete, he talked a lot of smack?

OK, I am the first to tell you, I didn't dig the whole Cat Killer marketing at poker runs. Totally inappropriate for the event, in my view. But the rest ... the hair, the style, the ego, the hype? Who cares? Get over it.

Did the boastful advertising bug you? Dear lord, that's why they call it advertising.

Spoke to Peter Hledin the other day for an unrelated story. He was downright ... sad ... about the Fountain situation. He praised Reggie up and down ... and if you follow this industry you know they had a difficult relationship.

Spoke so Phil Lipshutz of Cigarette dealer Lip-Ship Performance today on an unrelated story. Out of nowhere, nothing but praise and respect for Reggie. Not a negative word.

So I would ask you armchair haters: What do you know that Peter Hledin, Phil Lipschutz and a host of others (I could continue dropping names but it would be bad form) do not?

Hate his style ... he put it out there in the public light, so have at.

Hate his products ... they're not for everyone.

Hate his hype ... it was relentless.

But take glee in his failure? With zero, and I do mean zero, "due respect," that is just ignorant of the bigger picture.

I often agree with T2X. I often disagree with him. But on at least one point, he is correct: The demise of Fountain, Baja, Donzi and all the production boat guys is, if you care one bit about having choices in your performance boat options, a disaster. And not, as T2X would agree, anything that will be resolved anytime soon.

So why does it matter? Hell, the custom boat guys like Cigarette and Skater, though down, will survive.

Yes they will. And how many of you are "in the market" for that kind of purchase.

It's fun to Reggie bash. Public figure, big personality, the basing comes with the territory. But gleefully celebrating the bankruptcy of Fountain?

That's just stupid. Really stupid. Because in the end, that failure serves no one.

well put x 2

 

[Magicfloat]

www.wdnweb.com

 

[Sunsation96]

So what is this saying? They bought the debt and Reggie gets to play again? I am confused

 

[Offshoredrillin]

So what is this saying? They bought the debt and Reggie gets to play again? I am confused

in a nut shell, Yes, Reggie will remain president and CEO, but liberty is funding him. they still must pay oxford nearly 30k a month to pay off the 19.6 million note that they bought for 6.5 (in essence they were swooping in to buy everything for pennies on the dollar).

Now the key will be to see if they default on any of the 30k a month payments and how deep Liberty's pockets will be to fund it. Also it will be interesting to see if Liberty has override powers on Reggie for projects and such. being as they control the purse strings.

 

[Sunsation96]

in a nut shell, Yes, Reggie will remain president and CEO, but liberty is funding him. they still must pay oxford nearly 30k a month to pay off the 19.6 million note that they bought for 6.5 (in essence they were swooping in to buy everything for pennies on the dollar).

Now the key will be to see if they default on any of the 30k a month payments and how deep Liberty's pockets will be to fund it. Also it will be interesting to see if Liberty has override powers on Reggie for projects and such. being as they control the purse strings.

So is this saying he has to pay back the 30mil to the people he owes?

 

[Sean Stinson]

Yep two. 8 month and 15 years

You're always welcome to come stay at our place man. Anytime.

God 15 years bro......man does the time fly stud..... I appreciate the offer and the offer stands for here as well anytime my friend!!!!

 

[T2x]

Give it a rest? because you say so? .

If only the world were able to see the value in that simple statement......(sigh!)

T2x

 

[Offshoredrillin]

So is this saying he has to pay back the 30mil to the people he owes?

theoretically Yes, they have allowed him to restructure under the chapter 11, none of the debt has been cleared. however generally when under chapter 11, creditors cannot and are not allowed to start collection procedures. if he defaults on any of the payments that are court ordered, they can then move to chapter 7 which is outright bankruptcy, and assets are divided by court and some creditors may get hosed.

However all creditors may/should put him on a cash/cod only basis to not incur more potential debt, IF they do business with him at all.

 

[Shanghied Again]

I just want to ask a Question, why would anyone want to see companys fold?
We may not like certain people, or the way they run companys. But the fact is the boating industry is hurting and hurting bad. I look at Donzi and the impact it had on the company, workers, investors, dealers and banks. Now with Fountain, Baja and everyother company that is falling to the waist side. It hurts the Economy. Banks don't want to lend, dealers are giving boats away sometimes 30 Cents on a dollar. What do you think this does to your boats Re-Sale. Do I want to see Reggie Gone? NO. I am not a fan of him but the reality is that people will be out of work, adding more of an impact on our falling economy. Take a look at all your magazines, they are thin, less advertizing, no new boats being tested. Poker Runs are thinning out. We are starting to more then just manafactures going out. Mercury Marine is cutting back. Brunswick corp is cutting back and dropping boat lines. So I would agree instead of everyone wishing bad will on Reggie hopefully Fountain can be saved.

 

[phragle]

might I detract here.... yes we want the industry to succeed... no we don't want to see boat company employee's out of work... but the blind cries to save Reggie from himself are implying Obamanomics to the problem. "we have to save our struggling brother" " we cant let him fail". I'm sorry, this is the real world. not to long ago there was plenty of food on the table for everybody. Today that food is in short supply. By putting people at the table that did not earn their place, you are denying the nourishment of the companies that have put themselves in a position to dine.

 

[PatriYacht]

30,000 a month for a 6.5 mil. loan is a 5.5% rate on the loan. Not bad. It will have to be re-negotiated before Fountain comes out of bankrupcy protection though. In the mean time, Fountain has to make and sell enough boats to pay that. Not easy in this climate. Not easy when everyone is worried that gasoline will go back up to 5+ dollars a gallon as soon as the economy picks up. Washington has to deal with this energy shortage and windmills aren't going to cut it.

 

[Magicfloat]

I wish I had never started this thread,had no idea it would get so crazy.

 

[Sunsation96]

might I detract here.... yes we want the industry to succeed... no we don't want to see boat company employee's out of work... but the blind cries to save Reggie from himself are implying Obamanomics to the problem. "we have to save our struggling brother" " we cant let him fail". I'm sorry, this is the real world. not to long ago there was plenty of food on the table for everybody. Today that food is in short supply. By putting people at the table that did not earn their place, you are denying the nourishment of the companies that have put themselves in a position to dine.

:iagree:Very well put what everyone is seeing is just a Cleansing period the auto industry has gone thru and still is going thru. Everyone is cutting back. I just hate to see when a company goes under take the small guy's too because of the money owed to them. That sucks and something I have seen too much living here in Michigan not good for anyone involved.

 

[PatriYacht]

Thanks for starting it. Without it, I wouldn't have known where to go for news about Fountain. I'm glad Fountain is still in business and I'm glad Reggie is still running it. Say what you want about him, it's not easy to build and run a company of that size. If it was, everyone would do it. And he put some very fast, fine handling boats in the hands of working folks who don't have millions to play with. I want to see that continue. I'm still worried about Black Thunder....

 

[Offshoredrillin]

might I detract here.... yes we want the industry to succeed... no we don't want to see boat company employee's out of work... but the blind cries to save Reggie from himself are implying Obamanomics to the problem. "we have to save our struggling brother" " we cant let him fail". I'm sorry, this is the real world. not to long ago there was plenty of food on the table for everybody. Today that food is in short supply. By putting people at the table that did not earn their place, you are denying the nourishment of the companies that have put themselves in a position to dine.

Rob,thank you I agree.

I wish I had never started this thread,had no idea it would get so crazy.

You didn't do anything wrong Robert, its business not personal. If Fountain Inc. had used your business model they would be in a better place

30,000 a month for a 6.5 mil. loan is a 5.5% rate on the loan. Not bad. It will have to be re-negotiated before Fountain comes out of bankrupcy protection though. In the mean time, Fountain has to make and sell enough boats to pay that. Not easy in this climate. Not easy when everyone is worried that gasoline will go back up to 5+ dollars a gallon as soon as the economy picks up. Washington has to deal with this energy shortage and windmills aren't going to cut it.

Ian, the loan is 19.6 mill, they bought it for 6.5, that's all the other bank wanted to let go of it. fountain owes Oxford the full amount. They cut there losses, after Reggie winning in court, I highly doubt that Oxford will be so forgiving. If fountain/liberty cant make the payments, oxford may wind up owning everything eventually anyhow.

 

[Ratickle]

If only the world were able to see the value in that simple statement......(sigh!)

T2x

I love it.....:rofl:...:sifone:


That was a spitter...

 

[Ratickle]

I wish I had never started this thread,had no idea it would get so crazy.

It's all good. Discusion about issues, prudent logical discussion, is how things get figured out and fixed. That someone with an ego as big as Reggies, (or most boat racer/builders), has made some dislike him, is not surprising. I just don't think he's a really good CEO. But I'd gladly run his company for him.:sifone: