Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds / Retailing

Quiksilver Chapter 11 Petition Filed

Quiksilver and ten affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 15-11880. The Company, which designs, develops and distributes branded apparel, footwear and related products, is represented by Van C. Durrer, II of Skadden, Arps, Slate, Meagher & Flom. The bankruptcy is supported by 73% of the Company's senior most class of debt and is designed to restore long-term financial health. The Company's European and Asia-Pacific businesses and operations are not part of this filing. Additionally, Quiksilver announced that holders of its Eurobonds sufficient to waive any technical default arising from the filling have agreed to allow the Company to reorganize its U.S. operations in Chapter 11. The Company has requested Court approval of $175 million in new debtor-in-possession financing with affiliates of Oaktree Capital Management and Bank of America. Quiksilver further announced a plan sponsor agreement (PSA) with Oaktree Capital Management that provides a comprehensive blueprint for its emergence from Chapter 11 protection as a going concern pursuant to a plan of reorganization, under which Oaktree Capital Management has agreed to provide all necessary funding for the bankruptcy process and will convert its substantial debt holdings into a majority of the stock in the reorganized Company on exit. In connection with the bankruptcy filing, the Company intends to continue its existing store closing program to rationalize its store base in the Americas. "After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver," comments 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. Our fresh capital structure, with a very low level of debt for our industry, will enable us to invest in and reinvigorate our brands and products. We are confident we will emerge a stronger business, better positioned to grow and prosper into the future."

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