Quiksilver is in court as part of Chapter 11 proceedings, defending its proposal to borrow as much as $175m from Oaktree Capital Management. WGSN Global News Editor Nigel Taylor reports
Bloomberg reported Durc Savini, an investment banker at Peter J. Solomon Co. who is working with Quiksilver, testified “at some point” Oaktree may put the clothing companies together if it’s able to bring Huntington Beach, California-based Quiksilver out of bankruptcy and under its control.
Savini said he has not directly approached Oaktree about such a transaction and he doesn’t believe Billabong has the balance sheet to support such a deal. Oaktree holds approximately 20% of the Australia-based surfwear brand.
Quiksilver is in court as part of Chapter 11 proceedings, defending its proposal to borrow as much as $175m from Oaktree and Bank of America as part of a broader plan to have Oaktree convert its debt into equity and assume control of the company.
The surfwear company is seeking court approval of the financing over a competing proposal from Brigade Capital, which is preferred by the label’s unsecured creditors.
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