Fountain to reorganize with Liberty Investments
WILSON, N.C. — Fountain Powerboats will be allowed to reorganize with financial backing from Liberty Investments, a bankruptcy court judge ruled Friday. Liberty also became majority shareholder in Donzi Marine and Pro-Line Boats this summer.
Under the deal, the company will retain its assets, and Reggie Fountain will be retained as the company’s president and CEO.
FB Investments made an offer for Fountain’s assets last week — a credit bid of $8.75 million — but the ruling means FB will not gain control of the company. FB has been Fountain’s largest secured creditor since its parent company, Oxford Investment Group, purchased Fountain’s bank note from its previous creditor, Regions Bank, last month for $6.5 million. Regions was owed $19.6 million at the time of Fountain’s bankruptcy.
The judge ruled Friday that Fountain must pay $29,375 a month toward that note.
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