US hedge fund Coastal Capital has called for a complete overhaul of the Billabong board, to replace all directors besides founder Gordon Merchant and one of the company’s first employees, Colette Paull.
Coastal Capital bought a 5% stake in Billabong on August 12.
The fund is known for buying 17% of Alinta Energy and attempting to derail a $2 billion refinancing deal with TPG in March 2011.
On Friday, Coastal Capital asked Billabong to convene an extraordinary general meeting to discuss the makeup of the board and how it handled future financing plans.
The embattled surf brand told investors today that it was considering Coastal Capital’s request and that the action would not delay its refinancing plans.
Billabong announced that it had come to a refinancing agreement with Altamont Capital on August 21, but said two days later that it was also considering a competing proposal from Oaktree Capital Management and Centerbridge Partners.