The Sydney Morning Herald reported that Quiksilver won court approval for a $175 million bankruptcy financing with Oaktree Capital Management after Oaktree agreed to drop a $20 million break-up fee.

The Herald said with the financing and plan-support agreement, Oaktree will be in a position to take over the surfwear retailer by the end of January.

Earlier this week, unsecured creditors urged the bankruptcy judge in Wilmington, DE, to accept a competing financing proposal from Brigade Capital Management, which they argued would allow Quiksilver to pursue an open sale process.

The Herald said Oaktree was pushed to improve its terms in order to compete with the Brigade proposal.

The Herald reported that U.S. Bankruptcy Judge Brendan Shannon said the two proposals “represent a competing vision of how Quiksilver should restructure,” with Brigade pushing for a sale and Oaktree opting for a balance-sheet restructuring.