The terms of a US$294m refinancing deal agreed between Altamont Capital Partners and troubled surfwear brand Billabong have been revised to gain approval from the Australian Takeovers Panel.

The revisions centre on the steep interest rates and a weighty break fee that served to deter rival takeover bids.

In July, the brand's former lenders Oaktree Capital and Centerbridge Partners described the long-term deal with Altamont as "anti-competitive and coercive". The Takeovers Panel panel was brought in to investigate after a rival refinancing bid by the two US hedge funds was unsuccessful.

It ruled that the proposed US$65m early-break fee to be paid by Billabong to Altamont if it walked away from the deal was akin to a "lock-up device".

The panel also found an interest rate of 35% on the proposed $US40m convertible note for redeemable preference shares and options served to coerce Billabong shareholders to lodge a ''yes'' vote.

"The magnitude of the 35% interest rate and the circumstances under which it was payable amounted to a "naked no vote" break fee, which was likely to coerce Billabong shareholders to approve the issue of a controlling interest in the company," the Takeovers Panel said.

It also took issue with a clause that said Billabong would have to repay the entire US$294m loan plus 10% of the principal plus interest in the event of a change in control of the company within the first two years. This would put off rival takeover attempts it said.

The two companies have now revised their financial terms, with the break fee lowered to AUD6m. The US$40m convertible note has now been removed, and the size of the loan has been increased to US$275m from US$200m, with an upsize commitment of US$35m.

If there is a change of control at the surfwear brand, it will have to repay the loan at a 1% premium.

"We are pleased to be moving forward with our agreement with Billabong," Altamont Capital said in a statement.

"As the previous agreement also ensured, the revised Altamont Consortium deal secures the future of Billabong, an iconic Australian company that employs approximately 6,000 people and distributes its products through over 10,000 stores in Australia and worldwide.

"In addition to the financial support, our deal provides Billabong [with] a dynamic and proven executive in Scott Olivet, a veteran active sports industry leader, former CEO of Oakley and senior executive at Nike."