Billabong’s potential sale of RVCA, Element, or Dakine apparently has investors feeling more positive about the company according to a story on Bloomberg.com.
Shares in the company, which has breached debt repayment terms, surged as much as 35 percent following the statement to the Australian stock exchange and were 31 percent higher at 17 Australian cents at 2:49 p.m. in Sydney.
It’s sad when a 30 percent “surge” takes a stock to 17 cents, but good news is good news. The cause of the surge was a company update (which you can read after the jump) in which Billabong said that it has “entered into separate discussions with Altamont Capital Partners and Sycamore Partners regarding proposals presented to the Company for alternative refinancing and asset sale transactions.”
Guess the big question now is who will get what?COMPANY UPDATE
GOLD COAST, 25 June, 2013: On 4 June 2013 Billabong International Limited (“Billabong” or the “Company”) announced it had entered into separate discussions with Altamont Capital Partners (“Altamont”) and Sycamore Partners (“Sycamore”) regarding proposals presented to the Company for alternative refinancing and asset sale transactions, the proceeds of which would be used to repay in full the Company’s existing syndicated debt facilities (“Refinancing”).
In response to shareholder queries the Company confirms that refinancing and asset sale discussions are well advanced with both parties.
There is no guarantee that binding documentation acceptable to Billabong will be agreed with either Altamont or Sycamore in relation to the potential Refinancing transaction. In the meantime Billabong shareholders do not need to take any action in relation to this matter.
