Billabong director Gordon Merchant has had to fork out $30 million for shares in the company he founded, less than four months after spearheading a move to block a takeover bid.
Billabong's new chief executive Laura Inman confirmed Mr Merchant, the company's founder and major shareholder, would spend the $30 million to acquire the extra shares as part of the $225 million capital raising.
But she was unable to say why Mr Merchant did not take up his full share entitlement.
"All he has said is that he is going to be good for $30 million which, as you could appreciate, is a lot of money," Ms Inman said.
She also revealed Mr Merchant was not involved with discussions about how much money was needed to get the company back on track.
"Gordon is on the board, so I'm fortunate enough to see him then," she said.
"He's certainly someone that I could turn to if I needed to for guidance and so on.
"He's very knowledgeable about the organisation."
The surfwear group on Thursday said it had experienced a further deterioration in trade and asked shareholders, including Mr Merchant, to raise an additional $225 million of capital.
Billabong will issue new shares to existing shareholders at a 44 per cent discount, at around $1.02 a share.
It's a far cry from the $3.30 a share private equity group TPG Capital offered for the company in February.