According to a breaking press release, action sports giant Quiksilver has filed for ‘Chapter 11 backcruptcy’ – allowing them to restructure their US side of the business with help from Oaktree Capital Management. $175m of help, to be precise.

Although the company maintains that their non-US business and child companies are doing well, their home affairs have suffered drastically over the last few years, dropping almost 80% of its market value in this year alone.

So what’s to happen to giants like Travis Rice, still repping the brand? We’ll just have to wait and see – though having sold Mervin Manufacturing in 2013, it won’t affect things at Lib Tech and Gnu.

There is good news though: Quiksilver shares are currently priced at 10 cents each. Who’s gonna snap some up?

More to follow, but for now here is the beginning of their own press release, the rest can be found here:

Quiksilver, Inc. (NYSE:ZQK) (the “Company”) today announced that it commenced voluntary proceedings for relief under chapter 11 of the United States Bankruptcy Code in theUnited States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) for its U.S. subsidiaries. The chapter 11 filing, which is supported by 73% of the Company’s senior most class of debt, will facilitate Quiksilver’s financial and operational restructuring, which is designed to restore the Company to long-term financial health.

The Company’s European and Asia-Pacific businesses and operations remain strong and are not part of this filing. Additionally, holders of the Company’s Eurobonds sufficient to waive any technical default arising from the filling have agreed to allow the Company to reorganize its U.S. operations in chapter 11.

Following the filing, Quiksilver will continue to operate in the ordinary course of business as a “debtor-in-possession” under the jurisdiction of the Bankruptcy Court. Contemporaneously with the filing, the Company has requested that the Bankruptcy Courtapprove $175 million in new debtor-in-possession financing (“DIP”) with affiliates of Oaktree Capital Management, L.P.(“Oaktree”) and Bank of America, N.A. The Company anticipates that such financing, in conjunction with other existing sources of liquidity, will be more than sufficient to fund its ongoing operations in the U.S. and abroad. The Company also requested various forms of “first day” relief from the Bankruptcy Court to ease the U.S. subsidiaries’ transition into chapter 11 and protect its stakeholders and customers.

The Plan Sponsor Agreement (“PSA”) with Oaktree provides a comprehensive blueprint for the Company’s emergence from chapter 11 as a going concern pursuant to a plan of reorganization, under which Oaktree has agreed to provide all necessary funding for the chapter 11 process and will convert its substantial debt holdings into a majority of the stock in the reorganized Company on exit. The PSA contains certain conditions, including confirmation of a plan of reorganization by the Bankruptcy Court.

Oaktree is a leader among global investment managers specializing in alternative investments, with over $100 billion in assets under management. The firm, which emphasizes a value-oriented and risk controlled approach to investments, has a proven track record of success assisting companies through the restructuring process and in the action sports industry.