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
= new reply since forum marked as read
It might become literally necessary. 
I'm a Fender guy myself, but I do like the sound of the Les Paul.
