Gibson – one of America’s iconic guitar makers – is spiraling toward a massive restructuring:<\/p>\n
Less than six months out from those crucial deadlines, the prospects for an orderly refinancing \u2014 Gibson has hired investment bank Jefferies to help with that \u2014 look slim, observers say. And the alternative scenarios look likely to sideline longtime owner and CEO Henry Juszkiewicz.<\/p>\n
\u201cAt the end of the day, someone will take control of this company \u2014 be it the debtors or the bondholders,\u201d\u00a0Debtwire<\/i>\u00a0reporter Reshmi Basu told the\u00a0Post\u00a0<\/i>this week. \u201cThis has been a long time coming.\u201d<\/p><\/blockquote>\n
The culprit would seem to be corporate overextension – going into debt to buy subsidiaries like Baldwin Piano, and an assortment of home and pro audio marques – rather than the guitar business itself, which is still a good home base:<\/p>\n
\n\nGibson needs to report by next week its final numbers for its fiscal third quarter to stakeholders. One thing bond owners will be watching for is an improvement in the company\u2019s electronics business, which has been built up in the past few years via debt-fueled acquisitions but has seen sales slump of late.<\/p>\n
Still, even a solid turnaround on that front won\u2019t be enough for Juszkiewicz to avoid difficult conversations.<\/p>\n
\u201cSome type of restructuring will be necessary,\u201d Cassidy said. \u201cThe core business is a very stable business, and a sustainable one. But you have a balance sheet problem and an operational problem.\u201d<\/p>\n<\/div>\n<\/blockquote>\n
If this results in a fire sale of Les Paul Standards, on the other hand, that could improve\u00a0my\u00a0<\/em>fundamentals…<\/p>\n
<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
Gibson – one of America’s iconic guitar makers – is spiraling toward a massive restructuring: Less than six months out from those crucial deadlines, the prospects for an orderly refinancing \u2014 Gibson has hired investment bank Jefferies to help with that \u2014 look slim, observers say. And the alternative scenarios look likely to sideline longtime […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,14],"tags":[],"class_list":["post-66058","post","type-post","status-publish","format-standard","hentry","category-economy-and-the-market","category-music"],"_links":{"self":[{"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/66058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=66058"}],"version-history":[{"count":1,"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/66058\/revisions"}],"predecessor-version":[{"id":66059,"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/66058\/revisions\/66059"}],"wp:attachment":[{"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=66058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=66058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=66058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}