According to a Sydney Morning Herald news article, new investors have emerged in the ongoing Billabong refinancing saga. Coastal Capital International, a New York-based team of analysts-turned-investors headed by Vlad Artamonov and Todd Plutsky, have emerged as the latest bidders for the company, which has been working to secure refinancing for the past several months from Altamont Capital Group.
Coastal Capital International, which is urging the company to overthrow its entire board of directors who are positioned to vote on the recaptilization plan from Altamont in October, used its 5 percent stake in the company to allegedly call a Billabong board meeting to win over Billabong directors.
In the meantime, several new executive resignations—including VonZipper Vice President Vince De La Pena and Rob Riese, a founder and the director of design and merchandising—have allegedly been announced, according to the Sydney Morning Herald. Attempts to reach executives for comment were not returned as of the time this story was published. The news comes on the heels of Billabong reporting an $859.5 million year-end loss in global sales revenue.
The plan is understood to be designed to stymie the proposal from Altamont. Altamont and its partners have already extended a $325 million loan to Billabong and will seek shareholder approval in October for an equity deal as part of the recapitalisation package.
Coastal is thought to be supporting a rival recapitalisation plan from thrice-rejected suitors Centerbridge Partners and Oaktree Capital, who themselves are working behind the scenes to win over Billabong directors to support their deal.
Billabong said Coastal had used its 5 per cent stake to call for a general meeting at which it will seek to dump directors and alter the company’s constitution. A notice of meeting would need to go out within 21 days and be held within two months.
Billabong said its directors and advisers were reviewing Coastal’s request and the resolutions.
”The board does not anticipate that this action by Coastal Capital International will cause any delay or deferral of the company’s process to complete the long-term financing,” Billabong said.
To read more of the Sydney Morning Herald article, please follow this link: http://www.smh.com.au/business/yet-another-twist-in-billabong-saga-20130902-2t12y.html#ixzz2dqTkPqDY