Gibson Guitars in severe financial trouble

Bad news for all you string slingers. Gibson Guitars is in financial trouble. According to the Nashville Post, in six months, $375 million of senior secured notes will mature and another $145 million in bank loans will be due immediately if those notes, issued in 2013, are not refinanced by July 23. The company pulls in over $1 Billion annually. Therefore, Gibson has stated that its business is sustainable but has a “a balance sheet problem and an operational problem" and may need to restructure. Meanwhile, one of the largest creditors, Moody’s Investors Service, has stated that one of three things will happen- Gibson will refinance, Gibson will give up equity in the company in exchange for the amounts due, or Gibson will be forced in bankruptcy. We'll let you know what develops.