Gibson Brands Reaches Restructuring Support Agreement to Reorganize Around Core Businesses
Source: PRNewswire
Gibson Brands Reaches Restructuring Support Agreement to Reorganize Around Core Businesses
Iconic Brand to Continue to Manufacture, Supply, and Distribute to its Global Fan Base
Transactions to be Effectuated through Pre-Negotiated Chapter 11 Filings
Company has secured $135 million in Debtor in Possession Financing
NASHVILLE, Tenn., May 1, 2018 /PRNewswire/ -- Gibson Brands Inc. ("Gibson" or "the Company" , today announced it will be re-focusing the Company on the manufacturing of world-class, musical instruments and professional audio products and the continued development of the Company's portfolio of iconic, globally-recognized brands including Gibson and Epiphone, by reorganizing around its core businesses. The Company has reached a "Restructuring Support Agreement" with holders of more than 69.0% in principal amount of its 8.875% Senior Secured Notes due 2018, and its principal shareholders, that clears the pathway for the continued financing and operations of the musical instruments business as well as a change of control in favor of those noteholders.
To implement the agreement, the Company and its U.S. subsidiaries today filed pre-negotiated reorganization cases under Chapter 11 of the U.S. Bankruptcy Code. The filings will allow the Company's Musical Instruments and Professional Audio businesses to continue to design, build, sell, and manufacture legendary Gibson and Epiphone guitars, as well as KRK and Cerwin Vega studio monitors and loud speakers, without interruption. The Restructuring Support Agreement provides funding for the musical instrument and professional audio businesses, supports the Company's key vendors, shippers and suppliers, and provides for the restructuring of the Company's balance sheet. Gibson will emerge from Chapter 11 with working capital financing, materially less debt, and a leaner and stronger musical instruments-focused platform that will allow the Company and all of its employees, vendors, customers and other critical stakeholders to succeed. Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands, and David Berryman, Gibson's President, will each continue with the Company upon emergence from Chapter 11 to facilitate a smooth transition during this change of control transaction and to support the Company in realizing future value from its core business.
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Additional information is available by calling Gibson's Restructuring Hotline, toll-free in the U.S. at 1-844-240-1258. For calls originating outside the U.S., please dial 1-929-477-8085, Email inquiries can be sent to gibsoninfo@primeclerk.com. Court filings and other documents related to the court proceedings are available on a separate website administered by Gibson's claims agent, Prime Clerk, at https://cases.primeclerk.com/gibson.
Read more: https://www.prnewswire.com/news-releases/gibson-brands-reaches-restructuring-support-agreement-to-reorganize-around-core-businesses-300639935.html
Gibson Guitars has filed for Chapter 11 Bankruptcy
Beakybird
(3,333 posts)...with no strings attached.
lagomorph777
(30,613 posts)It might become literally necessary.
I'm a Fender guy myself, but I do like the sound of the Les Paul.
ProfessorGAC
(65,168 posts)I like the longer scale.
But my friend has a LP and it plays great
I've got 2 Strats (one of alder with a birdseye maple neck and fingerboard, the other is ash with a rosewood fingerboard) a standard Tele, and a Jazzmaster. Also a 5 string Jazz bass.
But my main two guitars are superstrats. One high end Japanese, the other German.
No short scales in the room.
But I do like my buddy's Les Paul.
lagomorph777
(30,613 posts)American Deluxe, honey alder body and (plain) maple neck, with SCN pickups and the S1 switch. It makes a lot of really nice sounds - noiseless like humbuckers but bright like conventional pickups.
TimeToGo
(1,366 posts)Crabby Appleton
(5,231 posts)the creditors committee should dump Henry as the first order of business.
Response to Crabby Appleton (Reply #5)
winstars This message was self-deleted by its author.
G_j
(40,370 posts)lots of competition
Steerpike
(2,692 posts)and quality has dropped...rank and file want an affordable guitar thats kicks ass...not overpriced star wars shit
Codeine
(25,586 posts)but Ill admit I play my Ibanez basses a lot more, and Im unlikely to buy another Gibby ever again.