Friday, August 28, 2009

It's Come to This: Fountain Files for Chapter 11

Clearly, times are still tough in the boating industry. Fountain Powerboats, which had just acquired Baja Powerboats last year, filed for Chapter 11 bankruptcy reorganization this past Monday in the U.S. District Court for the Eastern District of North Carolina.

Company founder Reggie Fountain, who started the company in 1979 near Washington, N.C., told the UK news Agency Reuters that the company is talking to as many as nine possible buyers of their current marine inventory to help pay off liabilities. “Business has been very, very weak,” he explained.

PHOTO CREDITS: Fountain Powerboats

According to the filing, the company lists $18.4 million in assets against $50.2 million in liabilities. If a sale of the inventory assets is successful, the company will continue its search for new investors; court papers indicate that if the sale is not approved, the next move would be toward an "orderly" liquidation.

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