According to an article published by Bloomberg on April 27, Guitar Center, Inc. (GC) is in talks with its creditors after missing payments on two of its bonds.
Anonymous sources relayed to Bloomberg that GC didn’t pay interest its unsecured bonds due 2022 and first-lein bonds due 2021 according to the piece.
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Investment bank Houlihan Lokey is currently advising the MI retailer.
The April 15 missed payments triggered a 30-day grace period prior to any formal event of default – time during which GC is negotiation with its creditors after COVID-19 related shutdowns negatively impacted sales. The firm of Stroock & Stroock & Lavan are working on behalf of debt holders, according to the anonymous sources.
