Quiksilver, Inc. announced that the United States Bankruptcy Court for the District of Delaware has approved a variety of First Day Motions related to its voluntary Chapter 11 restructuring. Collectively, the orders granted by the Bankruptcy Court on either a final or interim basis will help Quiksilver fund its ongoing operations in the U.S. and abroad throughout the restructuring process.”
As previously reported, the company’s European and Asia-Pacific businesses and operations remain strong and are not part of the filing. A majority of the company’s European bondholders also agreed that the U.S. filing would not affect their debt obligations.
Among the First Day Motions approved, the Court has authorized, on an interim basis, Quiksilver immediate access to $115 million of the $175 million debtor-in-possession (“DIP”) financing provided by affiliates of Oaktree Capital Management, L.P. (“Oaktree”) and Bank of America, N.A. The company anticipates that such financing, in conjunction with other existing sources of liquidity, will be more than sufficient to fund its ongoing operations in the U.S. and abroad.
“We are grateful that the Court was able to consider these motions promptly, and the relief granted ensures we will be able to continue to operate in ordinary course and deliver on our commitment to providing customers the same great experience with our brands and products they have come to expect,” said Pierre Agnes, Chief Executive Officer of Quiksilver. “We look forward to implementing our restructuring plan in the U.S. to strengthen the business and we will emerge a stronger business, better positioned to grow and prosper into the future.”
In addition, the Bankruptcy Court set a hearing date of October 6, 2015 for approval of the company’s Plan Sponsorship Agreement ("PSA") with Oaktree.
Quiksilver will continue to conduct business and serve its wholesale and retail customers during the restructuring process. The company’s full line of Quiksilver, Roxy and DC products will remain available in its stores and online.
The company indicated that it expects to provide additional details with respect to the chapter 11 filing as soon as they are available. Court filings and other documents related to the reorganization proceedings are available on a separate website administered by the company's claims agent, KCC, at http://www.kccllc.net/quiksilver, or www.deb.uscourts.gov, the official Bankruptcy Court website.
Quiksilver, Inc. owns Quiksilver, Roxy and DC.
