Quiksilver Creditors Come To Agreement, Keep Surf Brand Going

Back in September, “action sports company” Quiksilver USA filed for bankruptcy protection, planning to reorganize and make its retail presence even more action-packed. After months of arguing over the value of the company, with creditors claiming that the company is worth $144 million more than it claims. Finally, the two sides have come to an agreement, and the bankruptcy will be settled.

Quiksilver USA is the only part of the company affected, since its Asia/Pacific and European branches are separate companies that did not go on acquisition sprees in recent years. The company’s brands include Quiksilver, Roxy, and DC Shoes. A decade ago, the company bought the ski outfitter Rossignol, later selling it at a significant loss.

Junior creditors in this bankruptcy include Quiksilver store landlords and lenders that provided the company with unsecured credit. The fundamental disagreement about how much the company is worth meant that the creditors would head to court without deciding how much those junior creditors were owed.

One rumor is that the brand’s new owner, Oaktree Capital Management LP, plans to merge Quiksilver with a competing surf gear company with Australian roots, Billabong. Reorganizing the company and taking it private cut the company’s $826 million debt down to $300, and its biggest senior creditor, Oaktree, will own or acquire the rest of the company.

Quiksilver Said to Be Near Bankruptcy Deal With Junior Creditors [Bloomberg]
Quiksilver to go private after emerging from bankruptcy [Sydney Morning Herald]