SYDNEY — Billabong International Ltd shares rallied Tuesday afternoon on news that the company is progressing in refinancing talks with its two most recent failed takeover suitors — Sycamore Partners and Altamont Capital Partners.

This story first appeared in the June 26, 2013 issue of WWD. Subscribe Today.

The Burleigh Heads, Queensland-based surfwear manufacturer said Tuesday that “refinancing and asset sale discussions are well advanced with both parties.”

Billabong’s shares rose 46.15 percent on Tuesday to end the session at 19 Australian cents, or $0.18.

On June 4, Billabong confirmed it had failed to reach a takeover deal with either the Sycamore or Altamont Capital Partners/VF Corp consortia and issued its third profit downgrade since December.

In the same June 4 announcement, Billabong revealed that it was considering proposals from Sycamore Partners and Altamont Capital Partners for alternative refinancing, the proceeds of which would be used to repay in full Billabong’s existing debt — 286 million Australian dollars as of December 2012, or $264 million at current exchange.

Billabong has previously announced it is exploring the sale of 70-unit Canadian surf chain West 49, which it purchased in June 2012 for 99 million Canadian dollars, or $97 million, at June 2012 exchange — when the chain boasted 138 stores.

Earlier this month Craig Woolford, a senior analyst at Citigroup Australia, estimated that the RVCA brand, which Billabong acquired in 2010 for an undisclosed sum, could be sold for 50 million Australian dollars, or $46 million, while three brands — Billabong, RVCA and DaKine — could fetch a combined 110 million Australian dollars, or $101 million.

“There is no guarantee that binding documentation acceptable to Billabong will be agreed with either Altamont or Sycamore in relation to the potential Refinancing transaction,” Billabong said Tuesday.

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