Reggie Fountain scheduled for court-ordered examination

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Reggie Fountain, founder and president of Fountain Powerboat Industries, will appear today before FB Investments for a court-ordered meeting, according to documents filed Wednesday in U.S. Bankruptcy Court in the Eastern District of North Carolina.

Called a "2004 Examination," it relates to the acts, conduct or property or the financial condition of the debtor in a bankruptcy case.

FB requested the examination saying it wished to examine Reggie Fountain as to any and all aspects of the case, including all matters related to the Debtor-in-Possession financing motion, all matters related to Fountain's business relationship with Liberty Associates, all matters relating to any plan of reorganization and the protection of FB's collateral.

Fountain said it had no objection to Reggie Fountain appearing for the examination, but called the document request overly broad and said it "invades the providence of the debtor's negotiations and strategies regarding creditors and claims."

The judge ruled Fountain must provide FB with the documents it requested, but any documents in which Fountain claimed an attorney-client privilege would be examined Friday by the judge.

Today's examination precedes Friday's expected final hearing to confirm the sale of Fountain Powerboat Industries' assets, in which FB Investments' credit bid of $8.75 million is 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.

Fountain said the company received an alternative proposal from Liberty Associates in which Liberty would provide financing that would allow Fountain to continue operations and fund a proposed agreed plan of reorganization. Liberty, as part of the deal, would keep Reggie Fountain on board as president of the company.

FB Investments 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," but was not willing to name Reggie Fountain as CEO.

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