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.
by John Gentile