Billabong has opted for an alternative multi-million-dollar lifeline to the one it secured two months ago, meaning another new CEO for the struggling surfwear retailer.
Neil Fiske, a former chief executive of US outdoor clothing company Eddie Bauer, now holds the daunting task of turning Billabong around.
Almost two years of failed takeover moves and ongoing negotiations with private equity and investment firms have caused the company's market value to shrink.
Billabong's sales performance has also suffered due to the boardroom distractions, and challenging retail conditions around the world.
"Neil is a passionate outdoorsman with a proven record of turnarounds and is very enthusiastic about the Billabong portfolio of brands," Billabong said on Thursday.
Mr Fiske was appointed as Billabong decided to accept a re-financing deal worth up to $586 million from US investment firms Centerbridge Partners and Oaktree Capital Management.
The company said the Centerbridge and Oaktree deal was superior to a deal agreed to with US private equity firm Altamont in mid-July, which would have resulted in former Oakley boss Scott Olivet becoming CEO.
The Centerbridge and Oaktree deal offers cheaper debt, more upfront cash and less dilution for its existing shareholders, Billabong said.
The deal, made up of a $386 million loan, a $185 million equity placement and the issue of almost 30 million share options, will allow the company to stabilise its business, address its cost structure and grow.
"As Billabong continues to restructure its operations globally, the need for immediate long term funding certainty, and a strong financial base from which to reinvigorate an iconic group of brands, is best met by entering into this agreement now," Billabong chairman Ian Pollard said.
If Centerbridge and Oaktree take up all possible share options, the consortium will hold a 41 per cent stake in Billabong.
They will also be allowed three representatives on the Billabong board.
The new deal allows Billabong to repay the $315 million bridge loan it had already drawn from Altamont, but the retailer will have to pay a $6 million fee to Altamont for breaking their deal.
Investors welcomed the company's decision, with Billabong shares gaining 2.5 cents, or 5.56 per cent, to 47.5 cents.
But the shares remain well below the $1.42 they were worth in mid-February 2012, just before the company received its first takeover offer.
