New York, NY (Top40 Charts) Gibson Brands Inc. ("Gibson" or "the Company"), today announced that all of the major stakeholders in the Company's Chapter 11 cases have reached a global settlement with respect to the Company's plan of reorganization, which settlement has been embodied in a newly filed amended plan.
"With the Global Settlement in place, Gibson is on track to complete its restructuring and continue on its journey of crafting the highest quality of musical instruments known worldwide," said Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands. "It is because of the united efforts of all of our stakeholders and their commitment to seek resolution that we expect Gibson can emerge from Chapter 11 during the fourth quarter of this year as a stronger company, focused on its core musical instruments business with essentially no debt."
The Plan has been amended to provide the following, as summarized:
Agreements by the Company, Ad Hoc Committee of Secured Notes and the Supporting Principals Henry Juszkiewicz and
David Berryman with respect to adjustments to the Restructuring Support Agreement to facilitate improved recoveries for unsecured creditors under the amended plan;
Commitments by GSO Capital Partners LP (GSO), Koninklijke Philips N.V. (Philips), and the Committee to support confirmation of the amended plan;
Suspension of discovery and litigation over the plan and certain asserted claims;
Settlement of threatened litigation against GSO, the Supporting Principals, and others;
Agreed allowance and plan treatment for GSO's and Philips' claims against the Company.
Jamie Baird of PJT Partners, speaking at the request of the Ad Hoc Committee of Secured Notes, said "As the future owners of Gibson Brands, we are pleased that the business has performed well throughout the restructuring. With an anticipated exit from bankruptcy less than one month away, Gibson is poised for growth on strong consumer demand, significant available liquidity, and a debt free balance sheet at emergence. We look forward to working with the Company's customers, employees, suppliers, vendors, and other partners as Gibson gets back to its roots and its next chapter begins."
When the amended Plan is confirmed and goes effective, Mr. Juszkiewicz will step down from his position as CEO and assume the role of consultant to the Company. Effective today, Brian Fox of Alvarez and Marsal, who has been working with Gibson since August 2017 and has served as Chief Restructuring Officer, will oversee Gibson's daily operations in his role as CRO until a CEO successor is appointed, while Mr. Juszkiewicz takes some time off before starting his consulting role.
Commenting on his transition from CEO to a consultant, Mr. Juszkiewicz said, "I have been honored to lead such a dynamic company in an industry near and dear to my heart. I am excited about a great future for Gibson and its loyal employees, customers and partners."
The Company will be sending new ballots to and extend the voting deadline for holders of claims in Classes 6 and 8 only.
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
[email protected]. Copies of the plan and disclosure statement materials and other court filings and 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.
