A bankruptcy court in Delaware has approved the proposal of Oaktree Capital Management and bank of America to fund the continuation of bankrupt Quiksilver’s operations. The financial deal is, as reported, worth $175 million. Additionally, the court allowed another $10 million loan which is designed for payments to vendors critical to the surf company’s ongoing business.
Oaktree is also a large shareholder in Quik’s Australian competitor Billabong. The investor’s commitment to Quiksilver fueled recent rumors that the two big boardsports groups might end up in a merger.