New York, NY (Top40 Charts) Gibson Brands, Inc. ("Gibson" or "the Company"), today announced that the U.S. Bankruptcy Court for the District of Delaware has confirmed the Company's plan of reorganization, which has the unanimous support of all of the Company's key stakeholders. This represents the final legal step before Gibson can emerge from Chapter 11, which is expected in early November 2018.
"Today's confirmation of our plan of reorganization is a significant milestone toward completing our restructuring and beginning a new chapter for Gibson as a stronger company with essentially no debt and a bright future," said Brian Fox, Gibson's Chief Restructuring Officer. "Focusing on our iconic brands and core musical instruments, Gibson is poised to continue as one of America's premier manufacturers of musical instruments with a clear path that will benefit our customers, business partners and employees over the long term."
As previously disclosed, Gibson's plan of reorganization 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. The plan provides funding for the musical instrument and professional audio businesses, supports the Company's key vendors, and suppliers, and provides for the restructuring of the Company's balance sheet. Gibson expects to emerge from Chapter 11 with a capital structure that will allow for investment in the business, materially less debt, and a leaner and stronger musical instruments-focused platform that will position the Company for long-term growth in collaboration with all of its artist partners, employees, vendors, customers and other critical stakeholders.
Mr. Fox continued, "As Gibson moves forward, we would like to thank our employees, customers and business partners for continuing to support the Company and its iconic brands throughout this process. There is much to look forward to as Gibson embarks on its next chapter."
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.
Alvarez and Marsal is serving as Gibson's restructuring advisor; Jefferies LLC is its financial advisor and Goodwin is providing legal counsel.
Paul, Weiss, Rifkind, Wharton & Garrison LLP is providing legal counsel, and PJT Partners is the financial advisor, to the ad hoc group of unaffiliated noteholders that is supporting the Company's restructuring.
Gibson Brands, one the fastest-growing companies in the music and sound industries, was founded in 1894 and is headquartered in Nashville, TN. Gibson Brands is a global leader in musical instruments, and consumer and professional audio, and is dedicated to bringing the finest experiences by offering exceptional products with world-recognized brands. Gibson has a portfolio of over 100 well-recognized brand names starting with the number one guitar brand, Gibson. Other brands include: Epiphone, Dobro, Valley Arts, Kramer, Steinberger, Tobias, Slingerland, Maestro, Baldwin, Hamilton, Chickering and Wurlitzer. Audio brands include: KRK Systems, TASCAM, Cerwin-Vega!, Stanton, Integra, TEAC, TASCAM Professional Software, and Esoteric. All Gibson Brands are dedicated to innovation, prestige and improving the quality of life of our customers.
