BURLEIGH HEADS, Australia — Billabong International Ltd., the Australian surfwear company that’s already fielded five takeover and refinancing proposals since February 2012, said Coastal Capital International Ltd. is seeking a board shakeup.
The fund, which has a 5 percent stake in the business, had asked for a shareholder meeting to vote on resolutions including an amendment to Billabong’s constitution so that future debt or equity financing plans are subject to a shareholder vote. It also wants representatives on Billabong’s seven-person board and to have all directors removed except founder Gordon Merchant and his long-time friend Colette Paull.
Billabong’s full-year losses tripled to A$860 million and the company’s 40-year-old namesake brand was written off to a zero valuation in annual results announced last week. Management have accepted a bridging loan from Altamont Capital Partners to refinance its debt and are studying a separate proposal from a group including Oaktree Capital Management LP and Centerbridge Partners LP.
The Coastal Capital action isn’t expected to “cause any delay or deferral of the company’s process to complete the long term financing”, Billabong said in the statement today.
By: David Fickling; Editors: Anjali Cordeiro, Edward Johnson