Gibson Rescue Package Close But Delays Likely

According to many outlets, Gibson Brands has won approval for a loan of $135 million, enabling the company to attempt a restructure following its bankruptcy filing in early May.

Reportedly, US Bankruptcy Court judge Christopher Sontchi has approved a plan presented by Gibson attorneys. In recent weeks, the brand has managed to pay off roughly $20 million in revolving debt. However creditors are demanding a new management team, the dissolution of the consumer electronics division, and the termination of the long-term lease at the former Tower Records building in Hollywood.

However, the deal could be delayed further as Gibson is seeking bankruptcy court approval for more time to file financial reports on foreign subsidiaries it is winding down, noting in court papers the daunting task it faces in managing nearly 30 liquidations.

Gibson said in its papers it wants a 45-day extension until 19th July to file financial reports on its non-debtor subsidiaries due to the workload in compiling information from various locations worldwide while it juggles tasks in its Chapter 11 bankruptcy.