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First Capital Sues American Marine Holdings and Liberty Acquisitions for $61 Million

A complaint filed Wednesday, October 12, by FCC LLC, doing business as First Capital,  in the Superior Court of Beaufort, N.C., seeks more than $60 million dollars in damages from American Marine Holdings, Liberty Acquisitions, Baja by Fountain, Fountain Powerboats LLC and several other defendants for “breach of loan of agreements with FCC.” (See the complete court documents under Case No. 11CVS1012)

According to the First Capital complaint, the recent shutdown of American Marine Holdings at the Fountain Powerboats plant in Washington, N.C., also places the defendants in violation of their contract.

Following are items No. 2, No. 3 and No. 4 from the introduction in the complaint.

“FCC seeks to enforce its right as a secured lender of Borrower Defendants. In specific, FCC seeks approximately $61.04 million in damages form Borrower Defendants breach of loan agreements with FCC. By way of a separate motion, FCC also requests that this court appoint a receiver to preserve the value of the collateral securing FCC’s loans from further diminution and economic waste.

“Borrower Defendants are in default under various provisions of their loan agreement with FCC including, without limitation, the failure to maintain loan balances within the maximum credit line, violation of financial covenants, and failure to provide agreed financial and collateral reporting.

“Borrower defendants have also ceased operations of their business in violation of their obligations to FCC.”

Representatives of American Marine Holdings and Liberty could not be reached for comment when this story went live.

Related Story from WNT.com

COMPLAINT: Fountain Abandoned, Financial Mismanagement