Fountain working to retain assets in Chapter 11

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Fountain Powerboat Industries is trying to restructure its Chapter 11 bankruptcy protection in a way that would allow the company to reorganize and retain its assets, as opposed to selling its assets at an auction set for next week.

A deal is pending between Fountain and Liberty Investments that would make the investment group the majority shareholder in the company, founder, president and CEO Reggie Fountain told the Washington Daily News.

Fountain could not be reached this morning for comment.

Liberty would help finance the reorganization and help Fountain pay off its creditors. Fountain said he would be retained as the company president and CEO under the pending deal.

Fountain said he has been looking for a chief investor in the company since filing for bankruptcy protection in August, and he feels confident about Liberty because of the investment group's track record in the marine industry. Earlier in the year, Liberty became the majority shareholder of boatbuilders Donzi and Pro-Line, according to the report.

Fountain described the group of investors as "avid boat lovers."

Reports surfaced last week that Hustler Powerboats was close to acquiring a bank note from Fountain's largest creditor, Regions Bank. Shortly thereafter, Hustler issued a statement that said the bank note had been purchased by the Oxford Investment Group.

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