NASHVILLE, Tenn., May 31, 2018 /PRNewswire/ -- Gibson Brands Inc. ("Gibson" or "the Company"), today announced that the U.S. Bankruptcy Court for the District of Delaware in Wilmington entered a final order granting the company authority to access the full amount of its $135 million in debtor-in-possession (DIP) financing and use of cash collateral. The Court previously granted final approvals for the Company's first day motions intended to support the business, including continuing to pay employee wages and benefits and to honor warranties and customer programs.
"This is the next milestone for Gibson in completing our pre-negotiated Chapter 11. Our financing has the support of all of our stakeholders. Today's decision assures that it remains business as usual at Gibson," said Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands. "Pursuant to the Restructuring Support Agreement and the Plan Term Sheet, this plan already has the critical support of our majority note holders. The transaction embodied in the Restructuring Support Agreement will, once approved, reduce our leverage, and allow us to quickly emerge from this process with a stronger balance sheet to support the Company's long-term success, benefiting our valued customers, business partners, and employees in the years ahead."
As previously announced, on May 1, 2018, Gibson Brands filed its voluntary petitions and plan of reorganization in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The case number is 18-11025.
Additional information is available by calling Gibson's Restructuring Hotline, toll-free in the U.S. at 1-844-240-1258. For calls originating outside the U.S., please dial 1-929-477-8085. Email inquiries can be sent to [email protected]. Court filings and other documents related to the court proceedings are available on a separate website administered by Gibson's claims agent, Prime Clerk, at https://cases.primeclerk.com/gibson.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. securities laws. Forward-looking statements may include, but are not limited to, statements relating to our outlook and future financial performance, including the illustrative Adjusted EBITDA range described above. In some cases, you can identify forward-looking statements by terminology such as "believes," "anticipates," "plans," "expects," "intends," "estimates," "projects," "should," "will," "may," "would," "contemplates," "aims," "pro forma" and "might," the negative of such terms or other comparable terminology. Forward-looking statements reflect our current views about future events, are based on estimates and assumptions and are subject to known and unknown risks, uncertainties and contingencies. Many important factors could cause actual results or achievements to differ materially from any future results or achievements expressed in or implied by our forward-looking statements, including the factors listed below. Many of the factors that will determine future events or achievements are beyond our ability to control or predict. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in the Company's posting, dated April 4. 2018, to its intralinks website that may be accessed by certain persons in accordance with the indenture governing the Company's outstanding debt securities. The forward-looking statements included herein reflect our views and assumptions only as of the date of this press release. You should not place undue reliance on forward-looking statements. We assume no responsibility to update any forward-looking statements and we do not currently intend to provide additional guidance in the future.
Gibson Brands, one the fastest-growing companies in the music and sound industries, was founded in 1894 and is headquartered in Nashville, TN. Gibson Brands is a global leader in musical instruments, and consumer and professional audio, and is dedicated to bringing the finest experiences by offering exceptional products with world-recognized brands. Gibson has a portfolio of over 100 well-recognized brand names starting with the number one guitar brand, Gibson. Other brands include: Epiphone, Dobro, Valley Arts, Kramer, Steinberger, Tobias, Slingerland, Maestro, Baldwin, Hamilton, Chickering and Wurlitzer. Audio brands include: KRK Systems, TASCAM, Cerwin-Vega!, Stanton, Integra, TEAC, TASCAM Professional Software, and Esoteric. All Gibson Brands are dedicated to innovation, prestige and improving the quality of life of our customers.
SOURCE Gibson Brands Inc.