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Fountain tries to stop sale to FB Investments

Fountain Powerboat Industries and its subsidiaries filed paperwork Thursday rejecting FB Investments' bid to buy the company.

The report of sale was filed in U.S. Bankruptcy Court in the Eastern District of North Carolina in advance of today's final hearing on the sale.

That hearing was set to begin at 9:30 a.m. The outcome was unavailable by Soundings Trade Only's deadline.

"The debtors do not support confirmation of the sale to FB Investments as the debtors believe, exercising their reasonable business judgment, that the proposed financing and plan supported by Liberty Associates, L.C. would provide a greater benefit to creditors and any sale pursuant to the bid by FB Investments would not be in the best interest of the estate," Fountain said in its report.

"Section 7(c) of the sale procedures permits debtors to reject, at any time before the entry of an order ... any bid that in the debtor's sole discretion, is contrary to the best interests of the debtors," the report adds.

Fountain had previously asked the court to postpone today's final hearing on the sale, but that motion was denied.

FB Investments' credit bid of $8.75 million was unopposed.

FB Investments is a corporation formed by the principals of California-based Oxford Investment Group for the purpose of acquiring the Regions Bank note on Fountain.

FB said in court papers it planned to "utilize debtors' business as a platform to develop a broad-based branded boatbuilding business headquartered in Washington, N.C., with growing local employment utilizing local resources."

However, it was not willing to offer company founder Reggie Fountain the position of CEO. Liberty Associates, however, said it would retain Reggie Fountain as head of the company.

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