Reported by the Australian Financial Review, hedge fund Centerbridge Partners has bought $80 million worth of Billabong debt from Westpac and HSBC.
According to sources quoted in the article, it is likely to be an opportunistic purchase, and Centerbridge probably won’t hold the position long-term.
Westpac would be the second major bank to sell out of Billabong, after the Commonwealth Bank last week sold $65 million worth of Billabong’s debt to Bank of America Merrill Lynch.
“My sense is this will not be a debt for equity swap and go down the road of Nine (Entertainment Co) and Centro,” said one unnamed banking source.
“The funds are buying into the company based on a recap plan. I don’t think they will be long-term holders.”
It was also reported that representatives of the buy-out firm negotiating with Billabong over the sale of its assets, Altamont Capital Partners, are in Australia until Wednesday.
Read more about it here.
Now read: A Lot Of Big Investors Are Dumping Their Billabong Stakes
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