Liberty turning over reigns of Donzi management...

[gcarter]

Liberty Ceases Providing Management Services to

American Marine Holdings



Boca Raton, FL and Washington, NC – October 7, 2011: Liberty makes the following announcement regarding its participation in American Marine Holdings (AMH), which includes the boat brands Donzi, Fountain and Pro-Line.

Effective today, Liberty has ceased providing management services to AMH and Liberty’s affiliate has transferred its nominee ownership interest in AMH to FCC, LCC d/b/a First Capital, a portfolio company of HIG Capital. Liberty has enjoyed its part in steering the company through the very difficult times that the boat manufacturing industry has experienced recently, and wishes FCC continued success with AMH in the future.

Starting in 1964, Donzi, Pro-Line and Fountain have established themselves national and international recognized brand leaders in offshore powerboat racing, performance and recreational fishing tournaments, the performance Cruiser marketplace, while building a loyal, worldwide customer base. The three brands are manufactured in a modern 250,000 square-foot facility on the Pamlico River in Eastern North Carolina.

[gcarter]

So, now that I've posted that press release, here's a link to a Wikipedia article about HIG Capital:

http://en.wikipedia.org/wiki/H.I.G._Capital

[jl1962]

My take: Ownership has been transferred from a weak financial buyer to a strong financial buyer. Bain Capital, Blackstone Group, are very good names. I hope these guys are boaters!

Probably good news.

[Greg Guimond]

HIG also has a majority position in Teleflex.

[mattyboy]

so now pro line and fountain have been around since 64???? would any of this lead the board capitalist fanactics to think the future of the classic has changed?

[jl1962]

The Company needs to be in strong hands while the economy (hopefully) improves and the managers get the "vision thing" sorted out.

Fingers crossed-on both!

[Shanghied Again]

Until the goverment steps in and stops the banks from being a strong hold on this country and opens up the job market, any boat manafacture is not going to stand a chance in hell in this country. I was ran one of the top Donzi Dealers in the world "Typhoon Performance Marine" and we were crushed by the economy and so many more leading dealers went under. Donzi was on a rise in 2003 thru 2007 and they still make one of the best damn boats on the market. I miss so many of my friends that were in the industry and that includes my customers.. I hope for Donzi that this is a good turn around, for Josh that I love like a dear brother.. He is Donzi thru and thru.. God Bless..

[FISHIN SUCKS]

What am I missing here? I thought bajaha was also a part of this group but I see no mention, just Donzi, fountain and Proline.

[BUIZILLA]

with all these manufacturers offering 10-20-life hull warranties, and not surviving 2-5 years, makes ya wonder if it's even valid at all

[The Hedgehog]

Tough turn of events. I hate that for all involved and wish them all the best. They have made a bunch of dang good products.

Not a bad post George. A real and tough sign of the times. I will save my banking/econ sermon for the politics section.

[Marlin275]

Mr X posted this news:

More legal troubles for Fountain Powerboats

Lender First Capital is seeking $61.04 million in damages from Fountain Powerboats and other entities for the "borrower defendants' " breach of loan agreements, according to documents filed this week in North Carolina Business Court.

The documents, filed Wednesday, said operations at Fountain’s plant, where Donzi and Pro-Line boats are also built, ceased Oct. 7 and that the executive management and production manager resigned. Employees were told to go home and not report to work until further notice.
Calls to the plant by Soundings Trade Only were not immediately returned.

In its court papers, First Capital also alleges misappropriation of funds. “For example, the Fountain defendants received approximately $150,000 from the sale of four boats in February 2011 and failed to remit these funds to FCC as required by the Fountain loan agreement,” according to court papers.
Additionally, the borrower defendants received about $490,547 from service activities and about $306,582 from parts sales and failed to remit these funds to FCC as required, the complaint states.

The complaint identifies the borrower defendants as American Marine Holdings, Donzi Marine, AMH Government Services, Pro-Line Boats, Fountain Powerboats LLC, Fountain Powerboat Industries, Fountain Powerboats Inc., Fountain Dealers’ Factory Superstore, Baja by Fountain, Palmetto Park Financial, 50509 Marine, Liberty Acquisition FPB, and Joseph G. Wortley.

First Capital said in its filings that it and American Marine Holdings have a lending relationship dating from 2007. In early 2010, Wortley requested that First Capital provide financing to the Fountain defendants. Fountain Powerboats and the other defendants Thursday filed a motion to dismiss the complaint. They said the court does not have personal jurisdiction over the defendants and that the plaintiff failed to properly serve them.

A hearing was held Thursday on the complaint, but no decision has been made. According to local media, a decision is expected early next week.
Last week, Liberty Associates announced that it had ceased providing management services to American Marine Holdings and Liberty’s affiliate transferred its nominee ownership interest in American Marine to First Capital, a portfolio company of HIG Capital.

“Liberty has enjoyed its part in steering the company through the very difficult times that the boat manufacturing industry has experienced recently and wishes FCC continued success with AMH in the future,” the company said in a statement.After Fountain Powerboats filed for bankruptcy in 2009, Liberty Associates and Fountain filed a joint reorganization plan and Liberty acquired the company. Former owner and founder Reggie Fountain was initially retained as CEO, but the two parted ways at the end of 2010.

Earlier this year, Reggie Fountain filed a lawsuit against his former company for money he says is due him, as well as trophies and pictures from his racing days. Court documents that Fountain filed contain allegations of improper business dealings by Liberty CEO Bill Gates, and Fountain Powerboats is asking the court to strike them from the record.

Fountain Powerboats filed counterclaims against Reggie Fountain, saying Fountain took company property, as well as trade secrets, when he left the company