August 15, 2018

Oaktree may combine reorganised Quiksilver with rival Billabong

Oaktree owns about 20 per cent of Australia-based Billabong.
Oaktree owns about 20 per cent of Australia-based Billabong.
by Michael Bathon from

Oaktree Capital Management may consider combining bankrupt surfwear retailer Quiksilver with Billabong International, a brand the investment firm already owns a stake in, a US judge was told on Wednesday.

Durc Savini, an investment banker at Peter J. Solomon Co who is working with Quiksilver, testified that “at some point” Oaktree might put the clothing companies together if it’s able to bring California-based Quiksilver out of bankruptcy under its control.

Mr Savini added that he never directly approached Oaktree about a transaction with Billabong and that he didn’t believe Billabong “has the balance sheet to support” such a deal.

Oaktree owns about 20 per cent of Australian-based Billabong.

Quiksilver is in court defending its proposal to borrow as much as $US175 million from Oaktree and Bank of America Corp, part of a broader plan to have Oaktree covert its debt into equity and assume control of the company.

The maker of surf-style clothing is seeking court approval of the financing over a competing proposal from Brigade Capital, which is championed by Quiksilver’s unsecured creditors.

The New York Post reported earlier that a Quiksilver-Billabong combination was being considered, citing a source close to the matter that it didn’t name.


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