Hedge Funds Have Asked Australia's Takeover Regulator To Delay The Billabong-Altamont Deal

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Billabong creditors Oaktree Capital and Centerbridge Partners have asked Australia’s takeover regulator to put the breaks on a deal between the surf brand and Altamont Capital.

On Tuesday, Billabong announced that it had entered into a $US292m deal that would give Altamont the option to buy up to 40.5% of the company.

Oaktree and Centerbridge took control of all Billabong’s international loans earlier this month and were reportedly looking to convert the debt to equity.

The two funds made a bid for Billabong on Wednesday, and again on Thursday – after Billabong signed its deal with Altamont.

Billabong faces a $65 million break fee should it walk away from the deal with Altamont, as well as an interest rate hike from 12% to 35% if Billabong shareholders vote against issuing Altamont with the share options.

Oaktree and Centrebridge have asked the Australian Government Takeover Panel to remove both those clauses, arguing that they were “lock-up devices that are anti-competitive and coercive”.

Billabong shares have climbed almost 60% to $0.395 in the two-and-a-half days since it announced the deal with Altamont.

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