Iconic Gibson guitars under threat as company files for bankruptcy protection
New York — Gibson Brands has filed for bankruptcy protection, with lenders taking control of the iconic American business that’s supplied guitars to BB King, Elvis Presley and Pete Townshend. The Chapter 11 filing in Delaware on Tuesday keeps Gibson in business but gives ownership to noteholders, replacing stockholders that include CEO Henry Juszkiewicz, the company’s leader for more than three decades. According to court filings, current noteholders include Silver Point Capital, Melody Capital Partners and funds affiliated with KKR Credit Advisors. The restructuring will allow the instrument business to "unburden" itself of a consumer-electronics unit that Gibson blamed for its financial woes. Gibson owes as much as $500m, and lenders will provide a new loan of up to $135m to keep the company in business, according to court papers. Juszkiewicz, who has found himself at odds with creditors in recent months, will continue with the company on emergence from bankruptcy "to facilitate a...
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