Quiksilver's enterprise value continues to decline after bankruptcy

Los Angeles – Although Oaktree Capital planned to buy Quiksilver out of bankruptcy in November, the investment firm still maintains that the SoCal brand is still struggling with the same business struggles.

According to WWD, Oaktree agreed to provide up to 115 million dollars in debtor-in-possession financing for the California retailer after its bankruptcy filing. However, Oaktree now is searching for a bankruptcy court judge to rule in on how much of their secured note holders’ collateral has decreased since this acquisition. According to Peter J. Solomon Co., Quiksilver is approximately worth an average midpoint value of 546 million dollars. Since the company has filed for Chapter 11 Bankruptcy, the company’s enterprise value has continued to fall. The creditors committee believed that Quiksilver’s value was estimated much higher at approximately 735 million as a minimum set for any bids. Since the SoCal retailer’s value is nearly half of that, of course Oaktree’s creditors committee is quick to have criticisms.

All of this has lead to a reorganization plan hearing for the Quiksilver brand. The hearing is scheduled for January 27, 2016.