Oct 31 Sports-apparel maker Quiksilver Inc
ZQK.N will receive only 40 percent of the originally agreed
price for its Rossignol business, given the current turmoil in
credit markets, but got an extension on a credit line that was
due to mature on Friday.
Under terms of the amendment to the 70 million euros credit
facility, Quiksilver will reimburse its European bank group 15
million euros on Friday, and the remaining 55 million euros
will be extended until March 14, 2009.
The company, which has been reviewing options to secure
additional funding, is expanding the review to include private
equity investment capital and hired Morgan Stanley to assist it
in the process.
Shares of Quicksilver, which were at a 52-week high of
$13.69 a year earlier, were trading up 20 cents at $2.71 Friday
morning on the New York Stock Exchange.
In August, Quiksilver agreed to sell its underperforming
Rossignol ski business to Chartreuse & Mont Blanc, a group led
by Rossignol's former CEO, for 100 million euros.
The move was a relief to Quiksilver investors, who have
complained since the company bought the unit in 2005 for $560.8
million that the ski equipment business was a drag on profits
and did not fit well with Quiksilver's main strength in
The Huntington Beach, California-based company will now
receive only 40 million euros for Rossignol.
"In this time of unprecedented challenge in the global
credit markets, price concessions were required to achieve a
final sale of Rossignol," Chief Executive Robert McKnight said
in a statement.
(Reporting by A.Ananthalakshmi in Bangalore; Editing by