Fountain Powerboats files for Chapter 11 bankruptcy

[wiley]

Fountain Powerboats filed for Chapter 11 bankruptcy protection today, according to U.S. Bankruptcy Court documents from the Eastern District of North Carolina.

The company listed liabilities of $19.6 million and assets of just $3 — $1 each for Fountain Powerboats Inc., Baja by Fountain Inc. and Fountain Dealers' Factory Superstore Inc. The debt is all owed to Regions Bank of Birmingham, Ala.

This news comes only two months after Fountain announced it had retained investment banker Jacobs Capital to seek a partner with additional capital to support operations during the economic downturn and about six months after being delisted by the NYSE Alternext US, successor to the American Stock Exchange, for noncompliance with its standards.

[HOTSPOT]

WOW.

[autobaun70]

it appears that many of their liquid assets may have been converted to gold, in the form of heavy chains.

[DJWILLIAMS]

it appears that many of their liquid assets may have been converted to gold, in the form of heavy chains.

Like this?

LOL

[v70cat]

It is a sad sign of the times. Wonder what will happen to them?

[autobaun70]

It is a sad sign of the times. Wonder what will happen to them?

if they don't pull through I am sure some investor will buy them up just for their design rights & molds. Even if they went to a made to order situation, and scaled down quite a bit, there would still be a market for their hulls. Not my thing by any means, but definitely a market for their wares at the correct price.

[TVBX]

I assume BC will also take a hit as they "loaned" the money to Fountain to buy Baja. I assume Reggie flushes the toilet on the debt, buys the name(if he doesen't own it outright already) and waits for a better economy to re start the company. He may be a PIA but he is smart and shrewed.

[welder]

Sad Indeed, Hope Reggie pulls it back together.

[Blue Bayou]

More reason to buy a better hull & boat..........see signature for more details

[SCAngler]

sad to see but they were not the first nor will they be the last