Thursday, July 18, 2013

US hedge funds put rival debt deal to Billabong

US hedge funds Centerbridge Partners and Oaktree Capital put a rival debt-for-equity swap deal to Billabong that sources claim was superior to yesterday's debt deal the embattled surfwear retailer struck with US private equity firm Altamont, according to The Australian.??

Representatives of the funds flew into Brisbane on Tuesday to offer a deal, only to be told the target had accepted a deal from Altamont, the newspaper said.?

They said the rival proposal would leave the company with $100 million of debt compared to more than $300m and be much less dilutive for Billabong shareholders,?

Billabong sources rejected the hedge funds' version of events, saying the proposal from the funds only came this morning, after they had seen last night's announcement by Billabong to the Australian Stock Exchange, The Australian reported.?

Source: http://www.businessspectator.com.au/news/2013/7/17/retail/us-hedge-funds-put-rival-debt-deal-billabong

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