Gibson Brands Inc. filed for bankruptcy, seeking protection from its creditors.

“Over the past 12 months, we have made substantial strides through an operational restructuring,” Gibson CEO Henry Juszkiewicz said in a statement. We will “refocus on our core business” of musical instruments, which “we believe will assure the company’s long-term stability and financial health.”

According to the bankruptcy filing, the company owes as much as $500 million to creditors. These creditors include Silver Point Capital, Melody Capital Partners and funds affiliated with KKR Credit Advisors. Lenders will provide a new loan of up to $135 million to keep Gibson in business.

Juszkiewicz owns 36 percent of Gibson, but Bloomberg reported Gibson will repay bank loans while it goes through a “change of control” transaction, meaning Juszkiewicz will no longer own a stake in the company. He will however remain with the company upon emergence from bankruptcy “to facilitate a smooth transition,” reported the news outlet. Court papers state the Gibson CEO will receive a one-year consulting deal and compensation package.

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