Tiffany Kary and Emma Orr
Gibson Brands filed for bankruptcy with a turnaround plan that gives some of the company’s lenders equity ownership of the iconic American business that’s supplied guitars to B.B. King, Elvis Presley and Pete Townshend.
Support from senior secured noteholders will help Gibson repay bank loans while going through a “change of control” transaction, according to papers filed on Tuesday with its Chapter 11 bankruptcy in Delaware. The petition shows the company owes as much as $US500 million and that lenders will provide a new loan of up to $US135 million to keep Gibson in business.
The change in control will give noteholders equity in a new company, replaci…
Read the full article at: http://www.afr.com/lifestyle/arts-and-entertainment/music/gibson-swamped-by-debt-files-for-court-protection-20180501-h0zikr