Quicksilver Inc. (fka ZQKSQ)

[LouisDesyjr]

Comparison of Quicksilver with Hero Offshore

The situations, unfortunately, are not the same. While Hero Offshore did pay off the unsecured and the existing shareholders could get a few percent of the reformed company, that was because the assets on the books exceeded the liabilities by a large amount. Unfortunately, that is not the situation with Quicksilver, where stockholders equity has gone negative, meaning there is nothing left over from the assets for the common shares. The situation with Quicksilver is so bad that the unsecured are also taking large losses and the secured are getting almost all of the assets.

I think the bid mistake quicksilver made was to expand too fast with the large retail stores and into the clothing lines when surf wear was more popular. While still worn, the level of sales are not high enough to support all of the debt that was taken on to expand the product line.

Louis J. Desy Jr.