Fountain Powerboats granted temporary receiver

Christopher Gerber (CGerber@BoatingIndustry.com)
October 24, 2011
Filed under News

CHOCOWINITY, N.C. – A judge in the Fountain Powerboats and First Capital case appointed a temporary receiver last week to take over interests and assets for Fountain Powerboats immediately at its Chocowinity factory, according to WITN.com in North Carolina.

Ronald L. Glass and the GlassRatner Advisory and Capitol Group were named as the temporary receiver in the case and authorized “to take immediate possession of, hold and secure all capital stock and membership interests in the Borrower Defendants, together with all assets of the Borrower Defendants, including, without limitation, all real property, personal property and business records. Borrower Defendants, each of their respective officers, directors and representatives, and all other affiliates of Borrower Defendants, are hereby ordered immediately to surrender to the Receiver the possession, use, occupancy and control of the collateral.”

The decision by the court to grant receivership in the case was not the desired solution but was decided upon when the parties could not produce a viable alternative.

First Capital filed a complaint on Oct. 7 asking the court to enforce its rights as a secured lender and asking the judge for $61.04 million.

First Capital is claiming in the suit that the Fountain Powerboats plant in Chocowinity, N.C., was abandoned and no one is managing operations. Several other marine companies have been named alongside Fountain Powerboats in the case, including American Marine Holdings, Donzi marine, AMH Goverment Services, Pro-Line boats and others.

To read the full story, visit WITN.com in North Carolina.

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