Billabong International Ltd has decided to increase A$225 million ($229 million) selling the new stock at a discount to repay the debt after slashing its earnings target, the news reports said.

Australia-based largest surf-wear maker also said the investors can buy six shares for every seven they already own at A$1.02 a piece, 44% less than yesterday’s closing price.

The earnings before interest, tax, depreciation and amortization will be as low as A$130 million in the year ending this month, down from its previous target of A$157 million.

The Australian company is raising cash four months after spurning a takeover approach from TPG Capital and selling control of its Nixon watches and accessories unit to cut debt.

Last month, the company named Launa Inman as CEO to replace Derek O’Neill as it aims to turn around the falling sales and earnings. 

The company also said, it has generally continued to face challenging trading conditions particularly in Europe, Canada and Australia.

It also plans to shut as many as 150 of its 677 retail outlets and also cut 400 jobs. Yesterday, the shares of the company closed at A$1.83 and have also fallen 70% in the past year.

Today, the stock was halted from trading.

Billabong International is a clothing company traded on Australian Securities Exchange since August 11, 2000. It has 677 company owned stores as of February 2012  and 67 company owned stores worldwide.The company sells surf wear and accessories under the Palmers Surg, Honolua Surg, Swell.com, Von Zipper, Kustom (footwear), Nixon, Xcel Wetsuits and Tigerlily brands and also Element skate clothing and hardware.

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