Quicksilver files for Chapter 11 bankruptcy
Posted on Monday, September 14th, 2015 at 7:38 pm
Quicksilver Inc., a surfing attire company, filed for a debt-for-equity swap bankruptcy financing package. The agreement gives control of the debt reconstruction to Oaktree Capital Management. They were approved for a $175 million bankruptcy package by the U.S. Bankruptcy Court in Wilmington, Delaware.
Part of the funds will go to existing debt from lenders. The package allots $11.1 million to Wells Fargo Bank and $19.5 million to General Electric Capital Corp. The agreement with Oaktree proposes to swap $279 million in senior debt for equity after Quicksilver is restructured. Currently, Oaktree holds 73 percent of its senior debt. This proposal also yields $7.5 million for unsecured creditors.
Quicksilver was approved to close 27 stores and liquidate extra inventory as they restructure. Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC have agreed to host going-out-of-business sales for those stores that together lost over $5 million last year.
Quicksilver is one of the most well known extreme sports brands. They have sold their products under the names Quicksilver, Roxy, and DC as the longest-running brands of surf and snowboarding clothing. As they restructure, the company will continue to pay their employees and the suppliers to whom they owe funds.
Bankruptcy is a complex legal process that requires the experience of a knowledgeable bankruptcy attorney. If you are considering bankruptcy for your business, contact the Raleigh bankruptcy attorneys at the Bradford Law Offices, PLLC. Our staff is prepared to discuss the important legal and financial decision you are considering in detail. Call (919) 758-8879 today for more information.