FIRST ON WITN: Fountain Allowed To Reorganize

A bankruptcy judge has ruled in favor of Fountain Powerboats, and will allow the Beaufort County boat maker to reorganize.

After a day long hearing in Wilson, the judge will allow Reggie Fountain to remain as president and CEO of the company and permit it to reorganize with Liberty Associates.

On Monday, Oxford Investments purchased a $19 million Regions Bank note at auction for $6.75 million. The judge says Fountain must now make monthly payments of $29,375 to Oxford to pay off that note.

Stay with WITN News and for more on this developing story.

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A bankruptcy judge could decide what happens to what was once one of Beaufort County's largest employers.

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.

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A well-known boat building company in Beaufort County has a hearing in bankruptcy court today.

Fountain Powerboats in Beaufort County 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 today's hearing. Fountain said in August, it was cutting its work force to about a dozen workers. The boat-builder once employed more than 450. Last summer, the company was planning to add 250 jobs with the help of a state grant of as much as $12 million over five years.

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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by who cares Location: washington on Dec 5, 2009 at 05:36 PM
    no mention about the court ruling yesterday against oxford investments.
  • by laid off worker at fpb Location: washington on Oct 21, 2009 at 06:53 PM
    there are very curel statements made about mr. reggie but after beign layed off for 3 months, I hope I can get my job back soon.
  • by Parrott Head Location: Greenville on Oct 20, 2009 at 07:23 AM
  • by Roland Location: VA on Oct 18, 2009 at 08:46 PM
    Build the smaller boats for the tighter times. The older 24 AND 27 footers. Let customers special order the larger ones.Offer upgrades at a reasonable price to older boats to keep your staff during tight times. The factory does not need to floor plan its dealers.
  • by Carter Location: washington on Oct 15, 2009 at 04:16 PM
    It will be proof that Forehand must really have some dirt on Reggie if he's brought back to corrupt the company once again. If Reggie doesnt realize that BY NOW there will deffinatley not be a future for FOREHAND I mean FOUNTAIN. Handle your Biz Regg and good luck!
  • by MICHAEL L Location: MCHENRY IL on Oct 14, 2009 at 01:03 PM
    Congratulations Reggie and Fountain Power Boats I owen the worlds fastest that Reggie build. I know that Fountain Power boats are well build. I have been to the factory a few times and Reggie and Wyatt are great people. I am glad there back!!!!!!
  • by pirate fan Location: winterville on Oct 12, 2009 at 08:13 PM
    Glad he got another chance, reggie, can ur plant manager and run it like you did when you started the comapany. start building fewer but higher quality boats that you approve of.
  • by Waitress Location: greenville on Oct 12, 2009 at 10:25 AM
    Mr Fountain always treated me nice when I waited on his table (and he is a GREAT tipper, lol). He doesnt deserve the negative comments posted on here. I sure hope he finds out some of his most trusted employees were backstabbers (uou hear alot waiting tables). Makes me sick. Hope everyone gets their jobs back and we can hear race boats roaring up and down the river soon.
  • by Former Location: Employee on Oct 11, 2009 at 12:53 PM
    I'm glad Reggie will be back. Alot of people talk crap behind his back to the supposed to be new owners while driven nice cars, and then kiss butt to Reggie face! He gonna find them out too and they need to be gone, and he will find out!
  • by redneck woman Location: choco on Oct 11, 2009 at 12:02 PM
    I hope alot of u get ur jobs back asap. Goodluck to u all.

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