Company expects to emerge from U.S. bankruptcy around the week of Feb 8
Surfersvillage Global Surf News, 28 January, 2016 - Huntington Beach - Quiksilver, Inc. today announced that its Plan of Reorganization has been confirmed by the United States Bankruptcy Court for the District of Delaware, with significant support from the Company’s major stakeholders, including the official Committee of Unsecured Creditors.
The Company expects to emerge from bankruptcy on or around the week of February 8.
“This is an important milestone in the evolution of Quiksilver and we are pleased with the Court’s confirmation of our plan to emerge from bankruptcy only months after filing our voluntary petitions,” said Pierre Agnes, Chief Executive Officer of Quiksilver. “This is a testament to our strong vision, leading and resilient brands, passionate employees and loyal customers.”
Agnes continued: “Today marks a new beginning for Quiksilver, ROXY, and DC Shoes. We will emerge as a revitalized and stronger company with experienced leadership, rationalized operations, a clean balance sheet and a world-class partner in Oaktree, who brings additional strategic and operational expertise to our company. The reorganization plan we have put in place provides us with the strong long-term financial foundation to fuel the success of our brands globally and positions us well to reassert our leadership position in the action sports industry.”
“Quiksilver has tremendous brands that customers all over the world gravitate toward. Their emergence and new strategy will allow them to focus on innovating best-in-class products while xtending the reach and relevance of their leading brands. Simultaneously, it will allow the Company to accelerate their ongoing journey of operational excellence,” said David Tanner, Managing Director of Oaktree. “We look forward to partnering with Quiksilver management to continue shaping and driving their multi-year turnaround program.”
As previously announced, the Plan confirmed by the Court today and expected to become effective on or around the week of February 8 will allow Quiksilver to execute a financial and operational restructuring - designed to restore the Company to long-term financial health. Additionally, pursuant to the Plan, funds managed by Oaktree Capital Management, L.P. (“Oaktree”) will convert substantial existing United States debt holdings into a majority of the stock in the reorganized Company on exit.
Through the bankruptcy process, Quiksilver was effectively able to address both short and long-term financial challenges and create a solid foundation for the future success of its brands. Quiksilver is, and as a result of this process will continue to be, an iconic leader in the action sports market.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as the Company's legal advisor, FTI Consulting, Inc. as its restructuring advisor, and Peter J. Solomon Company as its investment banker.