New York

QUIKSILVER Inc, the California surfwear chain that lost 79 per cent of its market value this year, filed for bankruptcy with a plan to hand control over to lender Oaktree Capital Management LP.

Under a plan announced on Wednesday, affiliates of Oaktree Capital Management LP will supply the chain with the US$175 million financing it needs to get through a restructuring. At the conclusion of that process, Oaktree will exchange its debt claim for a majority stake in a reorganised Quiksilver. The plan requires bankruptcy court approval.