Gibson's Plan to Exit Bankruptcy Formally Approved

(Image credit: Gibson)

A Chapter 11 plan approved on October 2 will see bondholders take over Gibson. The legendary brand filed for bankruptcy protection this past May, following Gibson CEO Henry Juszkiewicz’s 2014 purchase of Koninklijke Philips NV for $135 million, which led to a failed relaunch of the guitar maker as a “music lifestyle” company.

After facing more than $500 million in debt, a plan is now in place to use “as much as $70 million to galvanize [Gibson’s] ‘business plan for growth,’ ” according to Billboard.

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Richard Bienstock

Rich is the co-author of the best-selling Nöthin' But a Good Time: The Uncensored History of the '80s Hard Rock Explosion. He is also a recording and performing musician, and a former editor of Guitar World magazine and executive editor of Guitar Aficionado magazine. He has authored several additional books, among them Kurt Cobain: Montage of Heck, the companion to the documentary of the same name.