Gibson's 2018 line of guitars.
Gibson has filed for Chapter 11 bankruptcy protection, the company announced today. The filing—which was first reported by Bloomberg, comes with a turnaround plan that
Gibson's 2018 line of guitars.
Gibson has filed for Chapter 11 bankruptcy protection, the company announced today. The filing—which was first reported by Bloomberg, comes with a turnaround plan that will transfer equity ownership of the company to its principal lenders.
In addition to this restructuring, Gibson will receive $135 million from those same lenders in order to keep the company's instrument manufacturing division in business during the transition.
The ownership change will shift control from current stockholders such as Chief Executive Officer Henry Juszkiewicz to noteholders that include Silver Point Capital, Melody Capital Partners and funds affiliated with KKR Credit Advisors, according to court filings obtained by Bloomberg.
Gibson's Innovations business, which it bought in 2014 from Koninklijke Philips NV, will be wound down, according to the company.
More on this story as it develops.