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Gibson Brands Bankrupt

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Gibson Brands and more than 10 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-11025. The Company, which manufactures musical instruments, is represented by David M. Fournier of Pepper Hamilton.

According to documents filed with the Court, “This reorganization permits the Debtors to focus on the future of their musical instruments business unburdened by the challenges experienced by the Debtors’ separate, primarily non-U.S., consumer electronics business caused by a variety of external factors. And, importantly, this restructuring effort enjoys the support of major stakeholders. The Debtors have entered into a restructuring support agreement that clears the pathway for the continued financing and operation of the musical instruments business.”

The Company’s 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 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. Henry Juszkiewicz, chairman and C.E.O. 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.

Gibson Brands received commitments for $135 million of debtor-in-possession financing from its existing noteholders. This financing, combined with cash generated from its operations, will provide the Company with the liquidity necessary to maintain its operations in the ordinary course during its reorganization proceedings.

Read more Gibson bankruptcy news.

The post Gibson Brands Bankrupt appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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