Reggie Talks about Chapter 11

[jeffbare]

Reggie Fountain talks about Chapter 11 filing
Posted on August 25, 2009
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Fountain Powerboat Industries chairman and CEO Reggie Fountain was upbeat this morning as he talked about the plan to bring his company through Chapter 11 reorganization and to continue to build the boats that have borne his name since 1979.

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"I always like to be positive; my glass is always half-full, not half-empty," he told Soundings Trade Only.

Fountain, who currently owns 52 percent of the company's stock, said he's now in talks with nine potential investor groups and hopes to find a buyer soon.

"We feel pretty sure one of the lucky ones will team up with us here, and we'll move forward in the next 30 years, just as we have in the past 30," he said.

"I'll probably own very little, if any, of the stock in the new company, but I'm hoping I'll continue to work for them," Fountain added. "That seems to be what they all want me to do, since I started this up, engineered it up and sold it for the last 30 years - over $1 billion worth of boats."

The company could emerge from Chapter 11 by the end of September, he said.

Fountain currently has about 40 employees, though that will be down to about 12 by next week. Just three years ago, when Fountain did $79 million in business, the company had about 450 employees.

"I hope we're going to bring them all back," he said. "Whether it's going to be six months or three or four years, I don't know. That's the saddest thing about the whole deal to me."

Fountain said his biggest mistake over the years was not putting aside money "for a rainy day," but instead reinvesting it in the company.

He predicted a different boat business, in general, when the recession ends.

"I think we all got away from reality. Everybody was building all they could build and sending them into the field, and finance companies were financing them and then all this stuff happens," he said.

Still, he said, many companies have filed for Chapter 11 and come out of it on the other side.

"We're following suit with what everyone else is doing," Fountain said, citing General Motors, Chrysler and Genmar. "I might as well get in on that deal."

"I'm looking around for good, strong partners. With enough good people to form a good team, I think you can make it through, and I think that's what's going to have to happen all throughout the marine industry."

- Beth Rosenberg

[Magicfloat]

Looks like the man had a plan all along.

[Ted]

Wonder what 50% of Fountain is worth? Really, not in Reggie numbers.

[Tank]

Well, there goes his bragging rights about being one of the only powerboat companies to not file capter11 over the years. He's been quoted saying that a number of times.

[BraceYourself]

Wonder what 50% of Fountain is worth? Really, not in Reggie numbers.

Nothing... It's a liability...

[PARADOX]

Reggie is just a figure head. Brusnwisk / Merc. owns the co.
Cat killng (or trying) is an expensive hobby.

[unitarious]

Wonder what 50% of Fountain is worth? Really, not in Reggie numbers.

I dont know ,but you Jerzey boys own about 90 % of the old fast hulls now !

[Offshoredrillin]

"We're following suit with what everyone else is doing," Fountain said, citing General Motors, Chrysler and Genmar. "I might as well get in on that deal."

translation: if I can get the government and you fools to pay it while I walk away, I'm going to do it......

footnote* he probably got that quote from the Ken Lay book of CEO for Dummies.....

jackass

[Expensive Date]

I would not count Reggie out any time soon.

[satisfied]

I just love how all you people know who owns Fountain. Do they Paradox? Let us know where we can find that little piece of info. Thanks



Good luck Fountain

[DaveP]

[QUOTE=PARADOX;304230]Reggie is just a figure head. Brusnwisk / Merc. owns the co.QUOTE]

Ummmmmmmmmmmmmmmmmmmm no.

[99fever27]

"We're following suit with what everyone else is doing," Fountain said, citing General Motors, Chrysler and Genmar. "I might as well get in on that deal."

translation: if I can get the government and you fools to pay it while I walk away, I'm going to do it......

footnote* he probably got that quote from the Ken Lay book of CEO for Dummies.....

jackass

Your hatred runs really deep doesn't it?

[DollaBill]

Reggie is just a figure head. Brusnwisk / Merc. owns the co.
Cat killng (or trying) is an expensive hobby.

Thats incorrect. Reggie is the major shareholder. The company has a close relationship with Mercury for several obvious reasons, but he's not a "figure head".

[redhotsommer]

Well, there goes his bragging rights about being one of the only powerboat companies to not file capter11 over the years. He's been quoted saying that a number of times.

Reggie must've picked on you a lot when you were a child, bro. EVERY time something comes up regarding Fountain, you've got something negative to type. We get it. You don't like Reggie. Give it a rest.

[Offshoredrillin]

Your hatred runs really deep doesn't it?

lol not hatred, just pointing out buffoonery.

[cigdaze]

Thats incorrect. Reggie is the major shareholder. The company has a close relationship with Mercury for several obvious reasons, but he's not a "figure head".

True, but!...

Reggie owns 52% of the shares. The number of outstanding shares is 4.36M.
It's worth $0.09 a share today. That's about $204,000.00.

In light of the debt to asset ratio, I'd say that the creditors own Fountain.

[Wahoo 214]

It is sad to see, but I am glad that I don't have a boat under construction at this time. 450 employees down to 20. That plus chapter 11 can't be good for production and morale.

That really stands for any of the builders today. If you are not buying from completed inventory, you could have some serious problems.

[Wobble]

Reggie is just a figure head. Brusnwisk / Merc. owns the co.
Cat killng (or trying) is an expensive hobby.

Not true, or not yet anyway. He personally owned 52% of the stock and shareholders the rest.

He will likely end up with no stock after the Chapter 11, depending on what is owed, brunswick might become the saviour though that seems unlikely given their problems.

[LotoSteve]

The sad part is, this will effect all boat builders. Not just Fountain. Even Cigarette has to have cut production way down and layed off many employees by now and its going to get worse. By the time its all over I would bet only a few performance boat builders will survive.

[Ratickle]

Tiara/S2, has almost 80% of their employees off. It's not just performance boats.