Gibson Reportedly Approved for Financial Lifeline

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

Reportedly, U.S. 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.