Billabong and hedge fund Altamont Capital have been forced to renegotiate their $395 million rescue package to avoid having Australia’s takeover regulator step in.
The Takeover Panel has been investigating the deal since mid-July, when Billabong creditors Oaktree Capital and Centerbridge Partners said terms of the agreement were “anti-competitive and coercive”.
The new deal has vastly reduced the fees that would have come into effect if there were to be a change of control in the company, or if shareholders voted against Altamont exercising its share options.
Altamont will control of up to 45.05% of the company under the new deal, including 1.72% of shares held by the CEO it instated, Scott Olivet.
The previous deal gave Altamont up to a 40.5% share of the company.
Billabong plans to finalise the new deal in 2-3 weeks.