New York, NY (Top40 Charts) Gibson Brands Inc. ("Gibson" or "the Company"), announced today that the U.S. Bankruptcy Court has granted, on an interim basis, the Company's first-day motions, which were designed to ensure daily operations continue normally during the Company's pre-negotiated Chapter 11 restructuring. The Court approved, among other motions, the Company's ability to continue paying employee wages and benefits and maintain all customer warranty policies.
In addition, the Court authorized the Company's $135 million debtor-in-possession (DIP) financing. The Court also approved the use of the Company's existing cash management systems and bank accounts, allowing the Company to issue payments and honor any outstanding checks, and to pay key trade vendors that sign a vendor support agreement.
"Today's approval of our first-day motions is encouraging and puts Gibson on a strong footing as we move forward with our reorganization with the support of a majority of our noteholders," said Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands. "These actions, along with access to new financing, should reassure our employees, customers, dealers, and suppliers that we will continue to maintain daily operations and that it is business as usual for Gibson Brands."
With the support of the majority noteholders on the Restructuring Support Agreement and the Plan Term Sheet, the Company anticipates completion of the pre-negotiated process by the fourth quarter 2018.
The Company filed its voluntary petitions and plan of reorganization on May 1, 2018, in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The case number is 18-11025.
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]. Court filings and other 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.
