Upstart New York-based hedge fund Coastal Capital International has bought a 5% stake in Billabong International, two years after it attempted to derail the $2 billion restructure of Alinta Energy.
The small fund was announced as a substantial shareholder on the retailer's share register today.
The move comes as Billabong awaits the green light from the Takeovers Panel for its debt-for-equity swap with US private equity firms Altamont Consortium and GE Capital, after a challenge from two spurned US hedge funds.
Hedge funds Centerbridge Partners and Oaktree Capital launched a challenge with the Takeovers Panel against the refinancing deal the private equity firms struck with Billabong this week, arguing it was anti-competitive and coercive.
In March 2011, Coastal Capital International attempted to derail a TPG-led $2 billion debt-for-equity deal for Alinta Energy.
The fund had bought up Alinta's stapled securities and threatened to vote against the deleveraging debt-to-equity restructure of the group, unless pushing for security holders to receive a much greater payout.