One Bidder At Fountain Powerboats Bankruptcy Auction

There was only one bidder at a bankruptcy auction held at Fountain Powerboats in Beaufort County Monday morning.

That's according to Irving Smith, Fountain Powerboats chief financial officer.

Smith said Oxford Investments was the only bidder and had been approved for a credit bid.

We're told the auction was for all of Fountain's assets, not pieces of them.

The bankruptcy auction started at 10 a.m. at the plant's facility in Washington.

The auction is not finalized until it is approved by a bankruptcy judge.

Another hearing is set for Friday.

Fountain Powerboats is working to appeal the purchase of the Regions Bank note by Oxford Investments.

Fountain continues to try to change its Chapter 11 so it can keep its assets and reorganize.

The auction and the appeal are expected to be part of Friday's hearing.

Fountain had tried to delay Monday's auction, but the delay was not approved by the bankruptcy court.

A schedule posted by the United States Bankruptcy Court Eastern District of North Carolina shows the October 9th hearing as beginning at 9:30 a.m. in Wilson with Judge Randy Doub presiding.

That schedule lists several scheduled matters before the court for Fountain Powerboat Industries Inc.

They include: a motion to sell free and clear of liens; a motion for authority to use cash collateral; a motion to obtain post petition financing; and a motion to appoint Chapter 11 trustee.

Last week, it was reported that Liberty Investments was interested in Fountain. Liberty acquired a majority of shares in Donzi and Pro-line boat companies in the past year. There is no word if Liberty is still working to secure a Fountain deal.

Another powerboat company, Hustler, was interested in Fountain, but the New York company pulled back in light of maneuvers by Oxford Investments, such as the reported purchase of the Regions Bank note.

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Monday's auctioning off of Fountain Powerboats may not take place as scheduled.

The company is now asking that the auction be delayed and instead the company be reorganized.

A hearing has been set for 9:00 a.m. in Wilson to postpone the scheduled auction that is set for 10:00 a.m. in Chocowinity.

This summer the troubled boat maker filed for chapter 11 bankruptcy protection. There have been several potential buyers for Fountain, but so far there's been no announcement of a possible sale.

Owner Reggie Fountain told WITN News that they are asking the bankruptcy court to change the process and allow the company to be reorganized, instead of being auctioned off. He says a reorganization would be more fair to both the creditors and the employees in the area.

Fountain says it is unlikely that the auction will take place Monday, even if the judge says to proceed with it because everyone involved will be at that Wilson hearing.

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  • by I'kaika Location: California on Apr 27, 2010 at 04:10 PM
    what would the impact of Fountain going bankrupt, compared to reorganizing>reorganizing continues the value and jobs>>without Reggie there is NO Fountain Powerboats--His accomplishments speak for themselves>>reorganize, seems to be the answer
  • by Anonymous on Jan 27, 2010 at 09:31 AM
    There are more millionaris in the US now than ever has been per capita. A Fountain boat cost much less than any sport fisher or cruise yaught. Some of you need to get out of Beaufort County and take a look at the waterways in metro or affluent areas. The problem is not Reggie. The problem is Beaufort county not attracting other business and industry to diversify the work force. Beaufort County has relied on National Spinning (mostly gone), Hamilton Beach (gone), Fountain (gone-may come back some) northern retirees (dried up) and Texas Gulf/PCS/Potash Corp (should be closed but EPA pressured by Walter Jones to extend permit to save jobs in Eastern NC). Most prospering cities diversify the workforce more and are more self sustaining. Beaufort County needs higher tech industry and organic farming. There are too many boat builders and uneducated farmers that continue to clear land and plant the same crops and continue to contaminate to land.
  • by washington on Nov 30, 2009 at 04:01 PM
    Thank God I finally have gone back to work at fountain sure hope the work will last for sometime and hope they have gotten straighten out
  • by Yes Location: Washington on Nov 19, 2009 at 06:33 AM
    The plants is in Washington. It was put in Washington by Reggie for the water and sewer.
  • by billy bobbb Location: arkansas on Nov 4, 2009 at 10:26 AM
    stupider is as stupider duz. plenty of people can afford those boats , just not the median income in the hills in greenville. go back to your mc job and quit logging your whining. dont comment on what you dont understand or can afford to understand.
  • by Anti-Terrorist Location: Greenville on Oct 6, 2009 at 11:07 AM
    Unsustainable business. Always was always will be. What tax bracket do you have to be in to afford a fountain boat? How many of those people do you think there are? Now out of those how many enjoy the water and boats? Now how many choose Fountain over luxury yachts? I have seen plenty overextend to finance one and have to give them up or have them repossessed. Justifying on in the present economy is Stupid. Not looking forward and thinking there won't be dips in the economy is even stupider. Build a realistic sustainable boating platform like Carolina Skiff! Cheap, fun, versatile, economic, and will last much longer with lower cost of ownership. Best.
  • by almostup Location: washington nc on Oct 5, 2009 at 04:46 PM
    LOL all you that think this company will bring the plant back and rehire employees make me laugh
  • by thats good Location: bath on Oct 5, 2009 at 02:33 PM
    {guess what} thats real good idea . maybe areality show after thinking about it. Since someone would paid $20 million dollars for debt, There might be someone out there to profit from this circus. As long as reggie gets paid. My guest is he will be trying to sue everybody now that the judge don't see it his way. Friday will be the day and reggie's appeal will be thrown out and Oxford will get the final say and I bet they don't even want the fountain name wait and see and hummmm it will be in washington now if he has a no compete clause
  • by ME Location: Chocowinity on Oct 5, 2009 at 02:30 PM
    Has anyone thought that perhaps the Company that comes in and buys fountain might just close the plant down totally and not bring any employees back?
  • by pete Location: grifton on Oct 5, 2009 at 02:20 PM
    Sorry I could not make it Reggie for the bid.My stimulus check did not arrive in time.I do have a new name for the company. Government Fountain.I want the first GOVT FOUNTAIN CRUISER 28 feet,Japanese twin 150 h.p motors with Chinese parts,color green(GO GREEN,Three cheers from AL GORE)Please-Please-Please Big Zero mail my check soon.
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