The writing has kind of been on the wall about this one, but now it's official. The maker of Gibson guitar — loved by music legends like Chuck Berry and David Bowie — is filing for bankruptcy protection.
UPDATE: Look at all the damn Gibsons at the bottom of this post.
The news comes after fans have had to read about iconic, 124-year-old music company's rising debts, and Billboard says that "a pre-negotiated reorganization plan filed Tuesday will allow Gibson Brands Inc. to continue operations with $135 million in financing from lenders. "
Gibson recently announced that it is in the process of finding a new credit facility to replace $375 million of senior secured notes before they mature in six months. If those notes were not refinanced by July 23, then another $145 million in bank loans will immediately become due.
Bloomberg added that support from senior secured noteholders will help Gibson repay bank loans while going through a "change of control" transaction, according to papers filed Tuesday with its Chapter 11 bankruptcy in Delaware.
"The petition shows the company owes as much as $500 and that lenders will provide a new loan of up to $135 million to keep Gibson in business," according to the financial website.
Do you write or play music on a Gibson? We'd love to see your photos. Tag us on Instagram (@cltampabay), Facebook or Twitter (@cl_music), and we'll include it in this post.
https://www.facebook.com/rayroa/posts/10209886273228272This article appears in Apr 26 – May 3, 2018.