|Longtime Gibson CEO Henry Juszkiewicz will depart as the restructuring is finalized.|
Gibson Set To Leave Bankruptcy
GIBSON BRANDS ANNOUNCED on September 10 that major stakeholders in the Company’s Chapter 11 case have agreed to an amended reorganization plan that paves the way for the guitar maker to exit bankruptcy. “With the Global Settlement in place, Gibson is on track to complete its restructuring and continue on its journey of crafting the highest quality of musical instruments known worldwide,” said Henry Juszkiewicz, outgoing chairman and CEO. “It is because of the united efforts of all of our stakeholders and their commitment to seek resolution that we expect Gibson to emerge from Chapter 11 during the fourth quarter of this year as a stronger company, focused on its core musical instruments business with essentially no debt.”
When the amended plan is confirmed, Juszkiewicz will step down as CEO and assume the role of consultant to the company. Brian Fox of the law firm Alvarez and Marsal, who has been working with Gibson since August 2017 and has served as chief restructuring officer, will oversee Gibson’s daily operations until a CEO successor is appointed.
Jamie Baird of PJT Partners, a global advisory-focused investment bank, said, “We are pleased that the business has performed well throughout the restructuring. With an anticipated exit from bankruptcy less than one month away, Gibson is poised for growth on strong consumer demand, significant available liquidity, and a debt-free balance sheet at emergence. We look forward to working with the company’s customers, employees, suppliers, vendors, and other partners as Gibson gets back to its roots and its next chapter begins.”