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 loudspeakers. 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.”