Quiksilver files for chapter 11 bankruptcy in U.S.

United States
Published:  14 September, 2015

The Australian founded, American based, surfwear chain Quiksilver has filed for Chapter 11 bankruptcy in the U.S. and is to receive financing from Oaktree, the largest shareholder in Billabong International.

The Chapter 11 filing, supported by 73% of the company’s senior most class of debt, should facilitate Quiksilver’s financial and operational restructuring and restore the company to long-term financial health. However, the company’s European and Asia-Pacific businesses and operations remain strong and are not part of this filing.

Under the Plan Sponsor Agreement (PSA), Oaktree has agreed to provide all necessary funding for the Chapter 11 process and will convert its substantial debt holdings into a majority of the stock in the reorganised company on exit.

Oaktree specialises in alternative investments and has over US$100 billion in assets under management. It emphasizes value-oriented and risk controlled approach to investments and has a proven track record of success assisting companies through the restructuring process and in the action sports industry.

“After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver,” said Pierre Agnes, Chief Executive Officer of Quiksilver. “With the protections afforded by the Bankruptcy Code and the financing provided by Oaktree, we will not only be able to satisfy our ongoing obligations to customers, vendors and employees, but we will also have the flexibility needed to complete the turnaround of our U.S. operations and re-establish Quiksilver as the leader in the action sports industry”, he added.

Quiksilver Inc.’s brands include Quiksilver, Roxy, and DC Shoes.

Source: FDRA