Quiksilver Reportedly Plans To File For Bankruptcy; Stock Plunges

(RTTNews) - Quiksilver Inc. (ZQK) is preparing to file for bankruptcy as soon as Tuesday evening in a deal that would hand control of the beleaguered surfwear chain to investment firm Oaktree Capital Management, Bloomberg reported citing people familiar with the matter.

As part of a prearranged Chapter 11 restructuring, Oaktree would provide $175 million in debtor-in-possession financing and assume control of the reorganized company, the report said.

The company reportedly had been trying to attract bidders for a management-led buyout, ideally outside of a bankruptcy. But that approach would have made it harder to abandon the company's costly leases, something Chapter 11 will allow Quiksilver to do.

ZQK closed Tuesday trading at $0.4550, up $0.0023 or 0.51%. However, in after hours, the stock plunged $0.31 or 67.03%.