Unsecured creditors opposed the restructuring path at court hearing
Surfersvillage Global Surf News, 16 October, 2015 - A U.S. Bankruptcy Court in Wilmington Delaware has approved the financial restructuring of Quiksilver by Oaktree Capital Management.
Accoring to the Bankruptcy News, Judge Brendan Shannon ruled in favor of Quik and Oaktree after a two-day hearing on the matter. There was another offer of financing from Brigade Capital Management who was supported by a committee representing unsecured creditors opposed the Oaktree restructuring path.
Judge Shannon's approval of the Oaktree deal came with stipulations that the groups make an effort to create a better opportunity to find another, better deal. The original deal had a $20 million "breakup fee" that Quiksilver would've been obligated to pay to Oaktree should Quik change to another deal from a different capital management company.
A lawyer for Oaktree indicated that the firm would be willing to move forward without the breakup fee and a deal was struck.
"The financing I'm prepared to approve isn't exactly what's on the table from Oaktree," Judge Shannon told Bankruptcy News regarding his changes to the original bailout plan.