UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 29, 2016

 

 

Quiksilver, Inc.

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware		001-14229		33-0199426
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)
5600 Argosy Circle, Bldg 100, Huntington Beach, CA				92649
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s telephone number, including area code: (714) 889-2200

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

---

Item 7.01 Regulation FD Disclosure

As previously disclosed in a Current Report on Form 8-K filed by Quiksilver, Inc. (the “Company”) on September 11, 2015, the Company and each of its wholly owned U.S. subsidiaries – DC Direct, Inc., DC Shoes, Inc., Fidra, Inc., Hawk Designs, Inc., Mt. Waimea, Inc., Q.S. Optics, Inc., QS Retail, Inc., QS Wholesale, Inc., Quiksilver Entertainment, Inc. and Quiksilver Wetsuits, Inc. (such subsidiaries, together with the Company, the “Debtors”) – filed voluntary petitions (the cases commenced thereby, the “Bankruptcy Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”). The Bankruptcy Cases are being jointly administered under the caption In re Quiksilver, Inc., et al., and the lead case number is 15-11880.

On January 29, 2016, the Debtors filed with the Bankruptcy Court a monthly operating report for the period of December 1, 2015 through December 31, 2015 (the “Monthly Operating Report”).

A copy of the Monthly Operating Report is attached hereto as Exhibit 99.1.

The information contained in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Cautionary Statement Regarding Monthly Operating Report

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Report is limited in scope, covers a limited time period and has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the Bankruptcy Cases and is in a format acceptable to the U.S. Trustee. The Company is not required to publicly update the Monthly Operating Report to reflect more current facts or estimates or the occurrence of future events, including if the facts, estimates and assumptions upon which the Monthly Operating Report is based are erroneous. The Monthly Operating Report was not audited or reviewed by independent accountants, was not prepared in accordance with generally accepted accounting principles in the United States, is in a format prescribed by the Bankruptcy Code, and is subject to future adjustment (which may be material) and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. The Monthly Operating Report also contains information for periods which are shorter or otherwise different from those required in the Company’s reports pursuant to the Exchange Act and such information might not be indicative of the Company’s financial condition or operating results for the period that would be reflected in the Company’s financial statements or in its reports pursuant to the Exchange Act. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.

---

Item 9.01. Financial Statements and Exhibits.

 

(d)

Exhibits

 

Exhibit No.		Description
99.1		Monthly Operating Report for the period of December 1, 2015 through December 31, 2015

---

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

				QUIKSILVER, INC.
Dated: February 1, 2016				By:		/s/ Thomas Chambolle
						Thomas Chambolle Chief Financial Officer

---

Exhibit Index

 

Exhibit No.		Description
99.1		Monthly Operating Report for the period of December 1, 2015 through December 31, 2015

Exhibit 99.1

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

		x
		:		Chapter 11
In re:		:
		:		Case No. 15-11880 (BLS)
QUIKSILVER, INC., et al.,		:
		:		Jointly Administered
Debtors.1		:
		:
		:
		x

NOTICE OF FILING OF DEBTORS’ MONTHLY OPERATING REPORT

FOR THE PERIOD OF DECEMBER 31, 2015

PLEASE TAKE NOTICE that the above-captioned debtors and debtors in possession (collectively, the “Debtors”) have filed with the United States Bankruptcy Court for the District of Delaware the Debtors’ Monthly Operating Report for the Period of December 31, 2015, attached hereto as Exhibit A (the “Monthly Operating Report”).

 

Dated:		Wilmington, Delaware
		January 29, 2016

 

 

 

1	The Debtors and the last four digits of their respective taxpayer identification numbers are as follows:

Quiksilver, Inc. (9426), QS Wholesale, Inc. (8795), DC Direct, Inc. (8364), DC Shoes, Inc. (0965), Fidra, Inc. (8945), Hawk Designs, Inc. (1121), Mt. Waimea, Inc. (5846), Q.S. Optics, Inc. (2493), QS Retail, Inc. (0505), Quiksilver Entertainment, Inc. (9667), and Quiksilver Wetsuits, Inc. (9599). The address of the Debtors’ corporate headquarters is 5600 Argosy Circle, Huntington Beach, California 92649.

Docket #0743

Date Filed: 1/29/2016

---

Mark S. Chehi, Esq. (I.D. No. 2855)

One Rodney Square

P.O. Box 636

Wilmington, Delaware 19899-0636

Telephone: (302) 651-3000

Fax: (302) 651-3001

- and -

John K. Lyons

Jessica S. Kumar

155 N. Wacker Dr.

Chicago, Illinois 60606

Telephone: (312) 407-0700

Fax: (312) 407-0411

Counsel for Debtors and Debtors in Possession

 

2

---

EXHIBIT A

---

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Quiksilver, Inc., et al.		Case No. 15-11880 (BLS)
Debtors		Reporting Period: December 1, 2015 to December 31, 2015

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month.

Submit copy of report to any official committee appointed in the case.

 

REQUIRED DOCUMENTS		Form No.		Document Attached		Explanation Attached		Affidavit/Supplement Attached
Schedule of Cash Receipts and Disbursements		MOR-1		Yes
Bank Reconciliation (or copies of debtor’s bank reconciliations)		MOR-1a		Yes				Declaration Attached
Schedule of Professional Fees Paid		MOR-1b		Yes
Copies of bank statements								Declaration Attached
Cash disbursements journals
Statement of Operations		MOR-2		Yes
Balance Sheet		MOR-3		Yes
Status of Postpetition Taxes		MOR-4		Yes
Copies of IRS Form 6123 or payment receipt
Copies of tax returns filed during reporting period
Summary of Unpaid Postpetition Debts		MOR-4a		Yes
Listing of aged accounts payable		MOR-4a
Accounts Receivable Reconciliation and Aging		MOR-5		Yes
Debtor Questionnaire		MOR-5a		Yes

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

Signature of Debtor				Date
Signature of Joint Debtor				Date
/s/ Andrew Bruenjes				1/29/2016
Signature of Authorized Individual*				Date
Andrew Bruenjes				Americas Chief Financial Officer
Printed Name of Authorized Individual				Title of Authorized Individual

 

*	Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

[1]	The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s taxpayer identification number, are:

Quiksilver, Inc. (9426); QS Wholesale, Inc. (8795); DC Direct, Inc. (8364); DC Shoes, Inc. (0965); Fidra, Inc. (8945); Hawk Designs, Inc. (1121); Mt. Waimea, Inc. (5864); Q.S. Optics, Inc. (2493); QS Retail, Inc. (0505); Quiksilver Entertainment, Inc. (9667); and, Quiksilver Wetsuits, Inc. (9599). The address of the Debtors’ corporate headquarters is 5600 Argosy Circle, Huntington Beach, California 92649. The direct and indirect international subsidiaries of Quiksilver, Inc. are not debtors in these chapter 11 cases.

---

Case No. 15-11880 (BLS)

Chapter 11

MONTHLY OPERATING REPORT

GENERAL NOTES AND DISCLAIMER

The financial statements and supplemental information contained herein are unaudited, preliminary, and may not comply with generally accepted accounting principles (“GAAP”) in all material respects. In addition, the financial statements and supplemental information contained herein is provided to fulfill the requirements of the Office of the United States Trustee and have been derived from the books and records of the Debtors.

The results of operations contained herein are not necessarily indicative of results that are expected from any other period or for the full year and are not reflective of the results of operations, financial position, and cash flow of the Debtors in the future.

Numerous Debtor subsidiaries had been inactive (the “Inactive Subsidiaries”) prior to the Petition Date, and continued to be inactive during the reporting period covered herein. Where applicable, the Inactive Subsidiaries are shown in the overall consolidation of the Debtor entities.

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver Inc., et. al.

Debtors-in Possession

MOR-1

Consolidating Schedule of Receipts and Disbursements

for December 1 to December 31, 2015

 

In U.S. Dollars		D.C. Shoes, Inc.				QS Retail, Inc.				QS Wholesale, Inc.				Quiksilver, Inc.				Hawk Designs, Inc.				D.C. Direct, Inc.				Fidra, Inc.				Mt. Waimea, Inc.				Q.S. Optics, Inc.				Quiksilver Entertainment, Inc.				Quiksilver Wetsuits, Inc.				Consolidated Filing Debtor Entities
Beginning Cash Balance		$	2,284,294			$	1,200,390			$	2,331,609			$	10,303,244			$	—			$	—			$	—			$	—			$	—			$	—			$	—				16,119,537
Total Cash Receipts			7,449,549				14,419,429				13,846,624				—				—				—				—				—				—				—				—				35,715,602
Operating Disbursements
Merchandise			5,174,639				—				14,846,248				—				—				—				—				—				—				—				—				20,020,887
Leases, Rent, & Utilities			32,380				1,777,268				595,647				2,067				—				—				—				—				—				—				—				2,407,363
Payroll & Related/Benefits			—				2,292,848				2,847,749				517,352				—				—				—				—				—				—				—				5,657,949
Freight/Customs			379,836				18,222				3,368,476				8,201				—				—				—				—				—				—				—				3,774,736
Taxes			25,410				1,090,231				59,239				57,740				—				—				—				—				—				—				—				1,232,620
Outside Sales Reps/Contractors			63,838				10,044				226,426				—				—				—				—				—				—				—				—				300,308
Insurance, Marketing, & Legal			584,103				78,260				643,520				1,652,041				—				—				—				—				—				—				—				2,957,923
Other			32,811				402,780				1,270,579				1,162,930				—				—				—				—				—				—				—				2,869,100
Total Operating Disbursements			6,293,018				5,669,653				23,857,884				3,400,332				—				—				—				—				—				—				—				39,220,887
Non-Operating Disbursements
Professional Fees & Expenses			—				493,798				—				8,563,298				—				—				—				—				—				—				—				9,057,096
U.S. Trustee Fees			—				—				58,675				—				—				—				—				—				—				—				—				58,675
DIP Interest and Fees			—				—				33,655				—				—				—				—				—				—				—				—				33,655
Total Non-Operating Disbursements			—				493,798				92,330				8,563,298				—				—				—				—				—				—				—				9,149,426
Total Disbursements			6,293,018				6,163,451				23,950,214				11,963,630				—				—				—				—				—				—				—				48,370,313
Net Cash Flow			1,156,530				8,255,977				(10,103,589	)			(11,963,630	)			—				—				—				—				—				—				—				(12,654,712	)
																																							Beginning Cash Balance								16,119,537
																																											Net Cash Flow				(12,654,712	)
																																			December Change in DIP ABL Balance:												—
																																			December Change in DIP Term Loan Balance:												10,000,000
																																							Net Financing Activity								10,000,000
																																							Ending Cash Balance								13,464,826

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver Inc., et. al.

Debtors-in-Possession

MOR - 1a

Bank Account Summary

for December 1, 2015 to December 31, 2015

 

Bank

Account Type

Entity

Bank Account # (last four digits)

GL Account #

Bank Balance [1]

Ledger Balance [1]

Reconciled (Yes / No)

Account Opened During Reporting Period

Bank of America

Receipts

DC Shoes, Inc.

x5130

101000-1

$

665,531

$

665,235

Yes

No

Bank of America

Check Disbursements

DC Shoes, Inc.

x5316

101030-1

286,307

(11,153

)

Yes

No

Bank of America

Wiring

DC Shoes, Inc.

x7221

101010-1

215,152

215,152

n/a

No

Bank of America

Receipts

QS Retail, Inc.

x5074

101000-1

388,275

910,462

Yes

No

Bank of America

Wiring

QS Retail, Inc.

x7207

101010-1

101,247

101,446

Yes

No

Bank of America

Payroll

QS Retail, Inc.

x5079

101020-1

351,662

276,452

Yes

No

Bank of America

Check Disbursements

QS Retail, Inc.

x5340

101030-1

214,366

(11,414

)

Yes

No

First Hawaiian

Deposits

QS Retail, Inc.

x5312

101040-1

85,631

114,764

Yes

No

Bank of America

Receipts

QS Wholesale, Inc.

x5050

101000-1

261,816

425,712

Yes

No

Bank of America

Wiring

QS Wholesale, Inc.

x7202

101010-1

1,790,769

1,790,769

Yes

No

Bank of America

Payroll

QS Wholesale, Inc.

x5055

101020-1

212,051

195,469

Yes

No

Bank of America

Check Disbursements

QS Wholesale, Inc.

x5308

101030-1

230,695

(338,293

)

Yes

No

Bank of America

Operating

Quiksilver, Inc.

x7023

101010-1

9,904,589

9,672,052

Yes

No

Bank of America

Payroll

Quiksilver, Inc.

x5017

101020-1

43,889

55,565

Yes

No

Bank of America

Check Disbursements

Quiksilver, Inc.

x5290

101030-1

636,590

(958,187

)

Yes

No

Merrill Lynch

Investment

Quiksilver, Inc.

x7H96

101055

156,648

156,648

Yes

No

Bank of America

Utility Deposit

Quiksilver, Inc.

x0661

100050

125,048

125,048

Yes

No

Total Account Cash

$

15,670,266

$

13,385,726

N/A

Store Cash

100000

79,100

79,100

Total Cash

$

15,749,366

$

13,464,826

 

[1]	Timing differences between bank and ledger balances are due to i) outstanding checks not yet funded at 12/31 and ii) deposits-in-transit as of 12/31.

[2]	Bank statements will be made available upon request.

“I attest that each of the Debtors’ cash accounts has been reconciled to monthly bank statements.”

 

/s/ Andrew Bruenjes

Andrew Bruenjes

Chief Financial Officer

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 1b

Schedule of Professional Fees and Expenses Paid

for December 1, 2015 to December 31, 2015

 

						Amounts Paid
Payee		Payor				Fees				Expenses
Restructuring Professionals
FTI Consulting, Inc.			Quiksilver, Inc.			$	1,812,113			$	227,905
Skadden, Arps, Slate, Meagher & Flom LLP			Quiksilver, Inc.				1,319,419				113,228
Kurtzman Carson Consultants LLC							—				—
Peter J. Solomon Company, L.P.			Quiksilver, Inc.				1,479,808				99,416
ICR, LLC							—				—
Pachulski Stang Ziehl & Jones LLP							—				—
Deloitte & Touche LLP							—				—
Deloitte Tax LLP							—				—
A&G Realty Partners, LLC							—				—
Akin Gump Strauss Hauer & Feld LLP			Quiksilver, Inc.				954,316				57,588
Pepper Hamilton LLP			Quiksilver, Inc.				102,305				9,102
PJT Partners Inc.			Quiksilver, Inc.				—				—
Cooley LLP			Quiksilver, Inc.				201,610				—
Province, Inc.			Quiksilver, Inc.				114,597				—
Bayard, P.A.			Quiksilver, Inc.				30,158				—
Houlihan Lokey, Inc.			Quiksilver, Inc.				600,000				20,980
Kirkland & Ellis LLP			Quiksilver, Inc.				1,359,481				61,272
Hilco Real Estate LLC			QS Retail, Inc.				493,798				—
Total Restructuring Professional Fees and Expenses						$	8,467,605			$	589,491

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 2

Consolidating Statement of Operations

For December 1, 2015 to December 31, 2015

 

In U.S. Dollars		DC Shoes, Inc.				QS Retail, Inc.				QS Wholesale, Inc.				Quiksilver, Inc.				Hawk Designs, Inc.				DC Direct, Inc.				Fidra, Inc.				Mt. Waimea, Inc.				Q.S. Optics, Inc.				Quiksilver Entertainment, Inc.				Quiksilver Wetsuits, Inc.				Consolidated Filing Debtor Entities
Net Sales			6,590,413				14,373,172				9,035,527				38,750				—				—				—				—				—				—				—				30,037,861
Total Cost of Goods Sold			3,816,609				7,997,937				7,322,302				—				—				—				—				—				—				—				—				19,136,847
Gross Profit / (Loss)			2,773,804				6,375,235				1,713,225				38,750				—				—				—				—				—				—				—				10,901,014
Total SG&A Costs			892,887				7,741,488				10,432,467				88,994				—				—				—				—				—				—				—				19,155,836
Asset Impairments			—				—				—				—				—				—				—				—				—				—				—				—
Operating Income / (Loss)			1,880,917				(1,366,253	)			(8,719,242	)			(50,244	)			—				—				—				—				—				—				—				(8,254,822	)
Total Restructuring / Reorganization Expenses			—				4,412,669				5,700,701				—				—				—				—				—				—				—				—				10,113,371
Total Other Expenses			(14,474	)			34,379				919,940				203,569				—				—				—				—				—				—				—				1,143,414
Net Income / (Loss) Before Taxes			1,895,392				(5,813,302	)			(15,339,883	)			(253,813	)			—																												(19,511,606	)
Income Tax (Benefit) / Expense			6,674				—				—				—				—				—				—				—				—				—				—				6,674
Net Income / (Loss)			1,888,718				(5,813,302	)			(15,339,883	)			(253,813	)			—				—				—				—				—				—				—				(19,518,281	)

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 3

Consolidating Balance Sheet

as of December 31, 2015

 

In U.S. Dollars		DC Shoes, Inc.				QS Retail, Inc.				QS Wholesale, Inc.				Quiksilver, Inc.				Hawk Designs, Inc.				DC Direct, Inc.				Fidra, Inc.				Mt. Waimea, Inc.				Q.S. Optics, Inc.				Quiksilver Entertainment, Inc.				Quiksilver Wetsuits, Inc.				Consolidated Filing Debtor Entities
Cash & Cash Equivalents		$	869,234			$	1,470,809			$	2,073,657			$	9,051,126			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	13,464,826
Accounts Receivable			21,210,869				1,251,217				31,999,581				—				—				—				—				—				—				—				—				54,461,667
Other Receivables			278,910				489,612				4,893,263				(4,446	)			—				—				—				—				—				—				—				5,657,339
Inventory			11,763,931				35,586,542				45,446,593				—				—				—				—				—				—				—				—				92,797,066
Prepaid Expenses & Other Current Assets			2,994,005				3,122,465				6,496,037				3,290,664				—				—				—				—				—				—				—				15,903,172
Total Current Assets			37,116,949				41,920,645				90,909,132				12,337,344				—				—				—				—				—				—				—				182,284,070
Property, Plant & Equipment, Net			186,889				11,204,931				25,485,231				17,651,663				—				—				—				—				—				—				—				54,528,715
Trademarks & Other Intangible Assets, Net			982,823				—				43,077,121				9,637,832				—				—				—				—				—				—				—				53,697,776
Goodwill			—				—				—				—				—				—				—				—				—				—				—				—
Investment in Subsidiaries			—				—				—				—				—				—				—				—				—				—				—				—
Deferred Tax Assets - Long-Term			—				—				—				(76,690	)			—				—				—				—				—				—				—				(76,690	)
Deposits & Other Long-Term Assets			183,747				203,128				1,566,102				30,829				—				—				—				—				—				—				—				1,983,805
Total Long Term & Other Assets			1,353,459				11,408,059				70,128,453				27,243,634				—				—				—				—				—				—				—				110,133,606
TOTAL ASSETS			38,470,409				53,328,704				161,037,585				39,580,978				—				—				—				—				—				—				—				292,417,676
Liabilities Not Subject to Compromise
DIP Loan Balance - Revolving Credit Facility			—				—				—				—				—				—				—				—				—				—				—				—
DIP Loan Balance - Term Loan			—				—				90,000,000				—				—				—				—				—				—				—				—				90,000,000
Accounts Payable			16,801,572				2,842,799				39,113,644				1,537,995				—				—				—				—				—				—				—				60,296,011
Accrued Liabilities			961,665				9,318,702				17,552,098				1,233,761				—				—				—				—				—				—				—				29,066,227
Income Taxes Payable			(297,901	)			12,359				263,641				201,265				—				—				—				—				—				—				—				179,363
Intercompany, Net			—				—				—				—				—				—				—				—				—				—				—				—
Deferred Tax Liabilities			—				—				—				21,802,511				—				—				—				—				—				—				—				21,802,511
Other Long-Term Liabilities			654,762				(3,150,358	)			5,040,734				—				—				—				—				—				—				—				—				2,545,138
Total Liabilities Not Subject to Compromise			18,120,098				9,023,503				151,970,117				24,775,532				—																												203,889,250
Total Liabilities Subject to Compromise			(58,892,223	)			11,092,086				30,728,011				558,735,972				—				—				—				—				—				—				—				541,663,846
TOTAL LIABILITIES			(40,772,125	)			20,115,589				182,698,128				583,511,504				—																												745,553,096
Total Equity / (Deficit)			79,242,534				33,213,115				(21,660,544	)			(543,930,526	)			—																												(453,135,421	)
TOTAL LIABILITIES AND EQUITY			38,470,409				53,328,704				161,037,585				39,580,978				—				—				—				—				—				—				—				292,417,676

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 4

Consolidated Status of Postpetition Taxes

For December 1, 2015 to December 31, 2015

 

In U.S. Dollars		Beginning Tax Liability				Amount Withheld or Accrued				Amount Paid				Date Paid		Check No. or EFT		Ending Tax Liability
Federal
Withholding		$	—			$	622,999			$	(622,999	)		Various		Various		$	—
FICA - Employee			—				331,817				(331,817	)		Various		Various			—
FICA - Employer			—				324,285				(324,285	)		Various		Various			—
Unemployment			—				3,351				(3,351	)		Various		Various			—
Income			—				—							N/A		N/A			—
Total Federal Taxes			—				1,282,452				(1,282,452	)							—
State and Local
Withholding			—				218,838				(218,838	)		Various		Various			—
Sales & Use Tax			871,954				943,560				(815,761	)		Various		Various			999,753
Excise			(5,631	)			11,625				(3,886	)		Various		Various			2,108
Unemployment			—				28,555				(28,555	)		Various		Various			—
Real Property			(30,630	)			63,333				(203,411	)		Various		Various			(170,708	)
Personal Property			22,872				50,791				(24,294	)		Various		Various			49,370
Income			11,500				11,500				—			N/A		N/A			23,000
Other: Business License			7,778				8,417				(5,558	)		Various		Various			10,637
Other: Annual Reports			(1,034	)			2,881				(1,657	)		Various		Various			190
Other: DE Franchise Tax			15,083				15,083				(36,540	)		N/A		N/A			(6,374	)
Other: Tax Audit Payments [1]			232,453				25,000				(110,768	)		N/A		N/A			146,685
Total State and Local [2]			1,124,346				1,379,583				(1,449,269	)							1,054,661
Total Taxes [2]		$	1,124,346			$	2,662,036			$	(2,731,721	)						$	1,054,661

 

[1]	Represents liabilities related to normal course tax audits.

[2]	The Debtors routinely file tax returns with applicable taxing authorities. Such tax returns are not attached due to their volume, and are available upon request.

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 4a

Consolidated Summary of Unpaid Postpetition Debts

as of December 31, 2015

 

		In U.S. Dollars
		Current				1-30				31-60				61-90				Over 90				Total
Accounts Payable, Trade [1]		$	17,632,556			$	6,522,941			$	643,439			$	991,781			$	(141,988	)		$	25,648,730
Inventory Received Not Vouchered [2]			13,965,058																				13,965,058
Accounts Payable, Manual [3]			20,682,223																				20,682,223
		$	52,279,837			$	6,522,941			$	643,439			$	991,781			$	(141,988	)		$	60,296,011

 

[1]	Accounts Payable, Trade is aged relative to payment terms in effect as of the Petition Date. Actual payment terms for most of the Debtor’ critical vendors have, however, been extended beyond Petition Date terms (to net 75 days) pursuant to trade agreements executed after the Petition Date.

[2]	Represents the value of inventory received from various suppliers, for which a related invoice had not been received by the Debtors, as of period-end.

[3]	Primarily represents period-end accruals for goods in transit.

---

Case No. 15-11880 (BLS)

Chapter 11

 

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 5

Consolidated Summary of Accounts Receivable

as of December 31, 2015

 

		Number of Days Outstanding
In U.S. Dollars		Current				1-30				31-60				61-90				>90				Total
Trade Receivables		$	33,706,526			$	11,747,355			$	2,705,344			$	2,838,293			$	8,825,384			$	59,822,902
Allowance for Bad Debts			(5,361,234	)																			(5,361,234	)
																						$	54,461,667

---

Case No. 15-11880 (BLS)

Chapter 11

 

Debtors-in-Possession

MOR-5a

Debtors’ Questionnaire

for December 1, 2015 to December 31, 2015

 

		Yes		No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.				X
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.				X
3. Have all postpetition tax returns been timely filed? If no, provide an explanation below.		X
4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.		X
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened accounts(s). If an investment account has been opened, provide the required documentation pursuant to the Delaware Local Rule 4001-3.				X