Dude, get off my wave!
Howard Marks’s Oaktree Capital Management is running into unexpected competition in its bid to gain control of Australian-born surfing brand Quiksilver, The Post has learned.
The company, which also owns the Roxy women’s wear and DC shoe brands, filed for bankruptcy protection for its US business on Sept. 9, along with a detailed restructuring plan that calls for senior debtholder Oaktree to assume majority control of the company after exiting bankruptcy.
The distressed investor’s turnaround plan calls for combining Quiksilver with Billabong, Australia’s largest surf wear brand which Oaktree already co-owns, said a source close to the situation.
Oaktree has offered Quiksilver $175 million in debtor-in-possession financing so it can operate while it works through bankruptcy, although it comes with a steep 12.5 percent interest rate, the source said.
LA-based Oaktree wants to speed Quiksilver through bankruptcy without having to square off with other bidders in an auction, according to the source.
“Oaktree is trying to fast-track the bankruptcy and hopes no one shows up,” the source added.
However, rival hedge fund Brigade Capital has told a Delaware bankruptcy court judge that it is prepared to offer a $115 million DIP loan at a lower interest rate, the source said.
Under Oaktree’s restructuring, junior Quiksilver creditors would get a very low recovery, so they have an incentive to support Brigade and push for a more open and lengthy process, the source said.
Oaktree, Quiksilver and Brigade declined to comment.