Billabong International’s Limited
(ASX:BBG) future will likely be in the hands of US hedge funds after Centerbridge Partners and Oaktree Capital Management took control of its loans, according to media reports.
Centerbridge has reportedly bought $80 million of Billabong's debt from Westpac Banking Corp
(ASX:WBC) and HSBC. Oaktree has also reportedly taken a stake of the debt.
Media reports say the hedge funds will likely push to convert their loans into equity in Billabong and take control of the group.
The sales come as Billabong's suitor Altamont Capital Partners enter further negotiations over its proposal to refinance the group's balance sheet.
Westpac reportedly sold its a parcel of debt worth $60 million – at a price of around 90 cents to the dollar to a buyer believed to be Centerbridge.
Billabong posted a net loss of $537 million for the first half of the 2013 financial year.
