Roughly two dozen former employees with Quiksilver will get pennies on the dollar in a settlement with the Huntington Beach-based retailer over severance pay.
The 26 former employees, including former Chief Executive Andy Mooney, were seeking $7 million. A bankruptcy judge approved a reduced settlement Tuesday.
Quiksilver settled for a $20,000 allowed administrative claims and $112,275 allowed priority claims. The $6.85 million owed was considered an unsecured claim.
The employees left the company before it filed for bankruptcy in 2015. Their claims were rejected by bankruptcy court in January 2016.
Quiksilver filed for Chapter 11 bankruptcy protection in September 2015. In October of that year, the company received court approval for a $175 million financing package from Oaktree Capital Management, which now holds a controlling interest in the company.
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