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Gibson files for bankrupcy, Tascam can have serious problems
  • Gibson Brands Inc. ("Gibson" or "the Company"), today announced it will be re-focusing the Company on the manufacturing of world-class, musical instruments and professional audio products and the continued development of the Company's portfolio of iconic, globally-recognized brands including Gibson and Epiphone, by reorganizing around its core businesses. The Company has reached a "Restructuring Support Agreement" with holders of more than 69.0% in principal amount of its 8.875% Senior Secured Notes due 2018, and its principal shareholders, that clears the pathway for the continued financing and operations of the musical instruments business as well as a change of control in favor of those noteholders.

    To implement the agreement, the Company and its U.S. subsidiaries today filed pre-negotiated reorganization cases under Chapter 11 of the U.S. Bankruptcy Code. The filings 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, without interruption. The Restructuring Support Agreement provides funding for the musical instrument and professional audio businesses, supports the Company's key vendors, shippers and suppliers, and provides for the restructuring of the Company's balance sheet. Gibson will emerge from Chapter 11 with working capital financing, materially less debt, and a leaner and stronger musical instruments-focused platform that will allow the Company and all of its employees, vendors, customers and other critical stakeholders to succeed. Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands, and David Berryman, Gibson's President, will each continue with the Company upon emergence from Chapter 11 to facilitate a smooth transition during this change of control transaction and to support the Company in realizing future value from its core business.

    The Company's Gibson Innovations business, which is largely outside of the U.S. and independent of the Musical Instruments business, will be wound down. The wind-down of the Company's GI Business is not expected to impact the Company's reorganization around its core Musical Instruments/Pro Audio business.

    In conjunction with the restructuring, the Company received commitments for $135 million of debtor-in-possession financing from its existing noteholders. This financing, combined with cash generated from its operations, will provide the Company with the liquidity necessary to maintain its operations in the ordinary course during its reorganization proceedings.

    Check more at https://www.personal-view.com/talks/discussion/18349/mergers-gibson-brands-or-branding-2#Item_2

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  • Among the topics Gibson’s creditors want to probe is the decision-making behind the 2014 acquisition of the Philips consumer electronics business, court papers say.

    It is funny point, as Philips consumer business at the time had best engineers and design team in the industry. Team that Gibson management trashed.