Ailing surfwear business Quiksilver has completed what it describes as the final step of a successful restructuring, reducing its debt balance by over AUD550m (US$414.4m). 

The concluding move has seen the company, together with its wholly-owned European subsidiary Boardriders, exchange EUR200m (US$222.1m) of Boardriders' outstanding 8.88% senior notes due 2017 for a combination of new Boardriders 9.50% senior notes due 2020 and cash. With 91.1% of the existing notes having been tendered pursuant to the exchange offer, Boardriders will issue EUR136.5m in aggregate principal amount of the new senior notes due 2020.

"The final results of this Exchange Offer were in line with our expectations and represent the final step of a successful restructuring," said Quiksilver CEO Pierre Agnes. 

He added that the final piece of financing has positioned the company "on the right path with a strong balance sheet". 

Through the restructuring process and the exchange offer, Quiksilver has reduced its debt balance to less than AUD250m from more than AUD800m. 

The company, which owns the Quiksilver, Roxy, and DC Shoes brands, said it has also bolstered its liquidity position, extended the maturity of the majority of its debt to 2020, and exited many onerous contracts that had historically burdened the business.

Quiksilver filed for Chapter 11 bankruptcy in September last year after continuing to report losses and falling sales. In January it booked a full-year net loss of AUD314m, compared to AUD327m a year earlier. Net revenues on a constant currency basis dropped 4% to AUD1.34bn, primarily due to a fall in Roxy and DC brand apparel sales in the Americas wholesale channel, of $14m and $6m respectively.

Quiksilver to emerge from bankruptcy in February