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Quiksilver obtains final court approval of $175 million DIP facility
By Caroline Salls
Pittsburgh, Oct. 16 – Quiksilver, Inc. received court approval to use the full amount of its $175 million of debtor-in-possession financing from affiliates of Oaktree Capital Management, LP and Bank of America, NA, according to a company news release.
The company said the financing will allow it to continue to fund ongoing operations in the United States and abroad.
As previously reported, the DIP facility is comprised of a $115 million term loan, which will mature 150 days from the bankruptcy filing date and accrue interest at 12%, as well as a $60 million ABL facility, which will mature 150 days from the filing date and accrue interest at Libor plus 350 basis points or the Base rate plus 250 bps.
Quiksilver also received court approval of an additional $10 million to honor pre-bankruptcy claims for critical vendors.
“We will continue to work in close cooperation with the creditors’ committee to execute our financial and operational restructuring, which is designed to restore the company to long-term financial health,” Quiksilver chief executive officer Pierre Agnes said in the release.
“We look forward to emerging from the Chapter 11 process, a stronger company better positioned to prosper into the future.”
The official committee of unsecured creditors had opposed the DIP financing, saying it effectively gave control of the case to the largest secured creditor.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as the company’s legal adviser, FTI Consulting, Inc. as its restructuring adviser and Peter J. Solomon Co. as its investment banker.
Quiksilver, an outdoor sports lifestyle company based in Huntington Beach, Calif., filed for bankruptcy on Sept. 9 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 15-11880.
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