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I've noticed a pattern on the LEVEL2 spread around this time of day for the last week or so. Hoping it means good things.
One could only hope. The fact Insiders keep buying is good. Perhaps averaging down? lol
Knew*
I jumped ship earlier today. Read my previous post. After I saw that in the 8-k I know it was a great day trade. Nothing more. Get out while you can!!
The Company has entered into a plan sponsor agreement (the “PSA”) with respect to the terms of a proposed plan of reorganization with certain holders (collectively, the “Plan Sponsor”) of its 2018 Notes (as defined below). Pursuant to the agreed upon term sheet for a proposed plan of reorganization annexed as an exhibit to the PSA, the Company’s existing debt will be reduced by approximately $500 million, including the extinguishment of all of the Company’s 2018 Notes and 2020 Notes (as defined below) (such transaction, the “Proposed Restructuring”). As consideration for such extinguishment, the reorganized Company would issue (a) new common shares to holders of its 2018 Notes, and (b) $7.5 million in cash, which would be allocated between holders of its 2020 Notes and holders of general unsecured claims. All of the Company’s existing equity securities, including its shares of common stock and warrants, will be cancelled and extinguished, without holders receiving any distribution.
I'm not getting my hopes up. Perhaps I'm wrong. The report didn't say shareholders would be wiped out, but also didn't say it couldn't happen in the future.
Didn't GM's old shareholders get wiped out? Correct me if i'm wrong, but nobody got out alive. Later had an IPO for the "new company"..... Thoughts?
Big Selloff today
AN INDUSTRY AT SEA
Surf industry analyst Jeff Harbaugh, author of a column called Market Watch, points out that Quiksilver isn’t the first surf brand to face trouble.
“Look back at the history of the industry, a number of brands have grown and grown and then kind of blew up,” he said, citing brands like Airwalk and Ocean Pacific.
“They had the same issues. Those are both (still) around as brands, but they certainly are not core bands, and not as well thought of by the surf market. Quiksilver isn’t the first one that has had this issue.”
As surf brands have expanded beyond the coast, they’ve taken different paths to handle growing pains.
Costa Mesa-based Hurley sold to a bigger company, Nike, in 2002. Founder Bob Hurley said he didn’t want to go public because, “I’d be fired in six months.”
Vans, headquartered in Cypress, faced its own roller coaster over the decades. The company went public in 1991, then had to lay off about 900 workers and shut down its Orange manufacturing plant. Then, VF Corp. bought the brand in 2004 for $400 million, and it went from a $380 million company to $2 billion in revenue earlier this year.
Then there’s Australian-based Billabong, which has its North American headquarters in Irvine. A few years ago, the brand was losing money and embroiled in a two-year takeover battle. In 2013, it inked a $360 million deal with C/O Consortium, a group of investors from Centerbridge Partners and Oaktree Capital Management. The goal was to help Billabong grapple with its debt and revive its brand.
In June, Billabong announced it was profitable for the first time since 2011, posting a net profit of $4.2 million versus losses a year earlier of $233.7 million.
Oaktree Capital is hoping to save struggling Quiksilver as well. Quiksilver’s shoe brand, DC, also was named in its Chapter 11 bankruptcy, though its women’s line, Roxy, was not.
According to a plan filed last week, Oaktree would provide Quiksilver with $175 million to finance its restructuring. After that, Oaktree would exchange its debt for a majority equity stake in Quiksilver. The company also plans to shut 27 stores, including ones at the Irvine Spectrum, Fashion Island and South Coast Plaza.
“At the end of the day, you have a company with way too much debt, and I didn’t know how they’d get out of that debt without some sort of restructuring,” Harbaugh said.
He wonders what might happen if the deal goes through. Will Quiksilver and Billabong work together? Will the competitors merge, combine resources, or continue to operate independently?
There’s already been a bit of a shakeup. A Billabong director, Matthew Wilson, resigned last Tuesday, citing “a potential conflict of interest in Oaktree’s investment portfolio.”
Harbaugh also points out that restructuring doesn’t address the underlying issue: Can Quiksilver’s brand become trendy again?
“We can all get excited about restructuring and fixing the balance sheet, that’s great,” he said. “The question still becomes, ‘who wants to buy the Quiksilver, DC and Roxy brand?’”
RENEWED FAITH
When Duke Edukas, co-owner of Surfside Sports in Costa Mesa, heard the news of Quiksilver’s bankruptcy, he let out a sigh of relief.
If Quiksilver can turn around like Billabong did under Oaktree’s guidance, it will mean good things for his store and customers.
Under Billabong’s new management, there’s a renewed strength of personal connections. The brand’s CEO, Neil Fiske, brought in with the Oaktree deal, personally stops into Surfside regularly to check on business.
Under Quiksilver’s previous CEO, former Disney and Nike exec Andy Mooney, the relationship between Quiksilver and Surfside was strained. When Quiksilver decided to hold a Black Friday sale on wetsuits right before Christmas, it hurt the specialty store’s sales. So when it came time to stock Quiksilver wetsuits at Surfside, Edukas decided instead to go with brands that supported his shops.
“It affected my faith in the brand. I had to rethink things,” Edukas said. “We made some drastic moves based on our fear.”
Mooney was replaced in March by longtime Quiksilver employee Pierre Agnes, and Edukas sees the new leader as someone dedicated to the core of the sport.
“The one special thing about the surf industry: We’re kind of a brotherhood,” Edukas said.
The prospect of a restructuring, he added, renews his faith and optimism in the Quiksilver brand.
“Things are going to change. I’m not going to go buy a bunch of Quiksilver, but the writing is on the wall. If anything is going to turn this ship, it’s going to be this,” Edukas said.
“Time will tell.”
Staff writer Hannah Madans contributed to this report.
Excerpt source
Knight with a big wall @ 245
Took a nibble today
Well, that doesn't look good. Lol
Well, that doesn't look good. Lol
I agree. Should see a retest at the day low, which is .35.... Then see where PSUN is at close.
Looks like someone tried to bid whack 250k @ .37.... didn't even budge.
Not quite yet. Too brief. Things should happen fast in the next 30. IMO
Okay. Well lets hope so.
People who sit on their money are gonna need some patience for this one. IMO
Company has no cash. I don't see much of an upside here. 10 less stores since last august with the opening of 5 this period. Thats about it. Lol. Stop the bleeding
I think it's called stock manipulation. Very little buyers right now. Need to wait on big news (such as good financials) for a proper reversal.
Then again, maybe I'm full of it.
Looks like about 1 million covered from yesterday.
So what you're saying is that I'm screwed until December. Gotcha
.95 is getting hit with sells but the bid stays put.... hmmm...
Well, that deescalated quickly.
Had a higher gross on sales compared to LY
Buyer's showed up.
Time will tell.
This stock is depressing
"Guess" is the key word.
I expect a big close today. Average Daily volume has already hit it's mark at noon. Buyers are starting show. Foot locker had a surprise on earnings, wouldn't it be nice if ARO had the same???
If it goes to a dollar I'm adding money I don't even have
If it goes to a dollar I'm adding money I don't even have
Borrrrringgggg. Time to wake up! ARO
Looks like a 50% retrace from July 31st. Could be wrong though.
Right now I'm fine where I'm at. Risk Aversion isn't in my vocabulary.
Good call. As for me, I'm rather pissed.
If short positions are lower on the 15th, There's no way it'll gap down. IMO