Oaktree and Centerbridge are trying to convince the Billabong board that their recapitalisation plan is superior to that offered by the Altamont consortium in not only financial terms but in management expertise and strategy.
The board has previously indicated it favours a $325 million debt and equity proposal from the Altamont consortium because it offers a total solution to Billabong’s problems, including a long-term turnaround plan and a new management team led by former Oakley chief executive, Scott Olivet.
But Oaktree and Centerbridge claim their proposal is superior because it would leave the company with less debt, interest costs would be lower, they are offering more for Billabong shares and the plan would be less dilutive to minority shareholders.
They also claim to have lined up a list of experienced surf, ski and skate industry executives who are prepared to join the Billabong team and plug gaps in the ranks after an exodus of senior staff.
Some of these staff have left to join Paul Naude, the former head of Billabong’s Americas division, who plans to set up a rival surf wear brand.
However, Oaktree and Centerbridge are not in a position to publicly name their proposed chief executive because he has not given notice to his existing employer, sources said.
Read the full story at The Australian Financial Review.
By Sue Mitchell, brw.com.au
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