A Hedge Fund Has Taken A Position In Billabong As A Lot Of Big Names Sell Out Of It

Photo:

Reported by the Australian Financial Review, hedge fund Centerbridge Partners has bought $80 million worth of Billabong debt from Westpac and HSBC.

Photo: Getty/Spencer Platt

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

Follow Business Insider Australia on Facebook and Twitter

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.