Even though the first Baja by Fountain boats were manufactured in July, for most Baja Dealers, yesterday was their first chance to get up close and personal with the new boats.

One major difference between the Bajas of old and their Fountain brethren is a new stringer system that is supposed to be a bit beefier.

Linky to article...

http://www.wdnweb.com/articles/2008/10/07/news/news01.txt

It will be interesting to see these new Bajas at the coming boat shows.

Linky to Baja's Web site...

http://www.bajamarine.com/

I bet taking on Baja increased the dealer count for the Reggie outfit by several fold. At least now non-Brunswick dealers will also be able to consider a Baja fanchise. A better deal for Baja fans, I think.

Kelly

I don't think so Kelly, Brunswick fronted Reggie the entire 4mil of Baja to keep Reggie out of default


http://biz.yahoo.com/e/080603/fpb8-k.html

Regions Bank Related Agreements

As previously disclosed in Form 8-Ks and 10-Qs filed with the SEC, the Company has an Amended & Restated Loan Agreement with Regions Bank (the "Loan Agreement"). The Loan Agreement covers a $14,500,000 term loan (the "Term Loan") and a $2,000,000 revolving line of credit (the "Revolver"). The Term Loan matures September 19, 2010, and is secured by accounts receivable, inventories, property, plant and equipment, death proceeds under certain life insurance policies, and common stock. The Revolver maturity date is July 12, 2008. As of March 31, 2008, the Company was not in compliance with the covenant setting forth minimum earnings before interest, taxes, depreciation and amortization (EBITDA). The remedy for an event of default prescribed in the Amended & Restated Loan Agreement is for Regions Bank to declare all or any part of any obligation of the Company to Regions Bank due and payable immediately. Regions Bank has waived its right to remedy the default resulting from the Company's breach of this covenant and issued such waiver in writing. This waiver extends to the end of the three months ending June 30, 2008, at which time covenant compliance will be determined anew. If the Company is not able to cure the default or obtain an additional waiver at that time, the lender has the right to foreclose on substantially all of the Company's assets.

On May 28, 2008, Baja By Fountain, Inc. granted Regions Bank a security interest in all its assets and guaranteed the obligations of the Company and FPI to Regions Bank. At the same time, Brunswick has entered into a Subordination Agreement with Regions Bank pursuant to which Brunswick subordinated its note and liens and other obligations of Baja By Fountain, Inc. described in Item 2.01 of this Report to rights of Regions Bank.

Item 2.01 of this Report is incorporated by reference into this Item 1.01.

So Brunswick gave money to a failing company to save another failing company. Is this the same plan they are using to save wall street?

Gotta have an outlet for those engines and drives.

Big part of the deal was Reggie was to use more Merc stuff in the Fountain racers and had to have Merc advertising on the hulls.

Not exactly, as the Wall Street plan is purely a paper plan. The Brunswick game includes moving a good number of their Mercruiser motors. Ever see a Fountain with a Volvo in it?

Kelly

No Volvos, but the way I'm reading it, Brunswick wants Reggie to stop using anyone else and hast to promote Merc at every turn

http://www.secinfo.com/d14D5a.t3SEs.8.htm

Scott from the way I read that its just saying in the Baja's he has to use every merc part avail to put in that boat. Not really a bad deal for fronting 4 mil since he was most likely going to use pretty much all merc parts anyway.

FCMarine,

Note the section about placing the advertising on the Race / Fish boats. Kind of hard to put that type of advertisment on the boat and run some of the exotic / custom stuff.

Also the agreement is with Fountain, not Baja by Fountain.

Who knows, at this point Fountain is in real bad shape - stock was down below 40 cents - over 2.40 in the last 52 weeks.