Gibson Bankruptcy Plan Formally Approved
The guitar giant will be restructured, while longtime CEO Henry Juszkiewicz has been ousted.
Richard Bienstock 1 hour ago

https://www.guitarplayer.com/players/gibson-bankruptcy-plan-formally-approved

A Chapter 11 plan approved on October 2 will see bondholders take over Gibson. The legendary brand filed for bankruptcy protection this past May, following Gibson CEO Henry Juszkiewicz’s 2014 purchase of Koninklijke Philips NV for $135 million, which led to a failed relaunch of the guitar maker as a “music lifestyle” company.

After facing more than $500 million in debt, a plan is now in place to use “as much as $70 million to galvanize [Gibson’s] ‘business plan for growth,’ ” according to Billboard.

Gibson will be run by bondholders that include Kohlberg Kravis Roberts & Co. (KKR) and Melody Capital, with Juszkiewicz and co-owner Dave Berryman’s equity stakes cancelled.

Nat Zilkha, KKR’s head of alternative credit, will be among the restructured company’s new board members. Zilkha told Bloomberg: “For us, establishing the credibility that we intend to deliver is important. We are musicians. We care deeply about the brand and we are going to protect it.”