Gibson Brands Receives Approval of First Day Motions; Approvals Ensure Operations Continue Normally

NASHVILLE, Tenn., May 3, 2018 /PRNewswire/ -- Gibson Brands Inc. ("Gibson" or "the Company"), announced today that the U.S. Bankruptcy Court has granted, on an interim basis, the Company's first-day motions, which were designed to ensure daily operations continue normally during the Company's pre-negotiated Chapter 11 restructuring. The Court approved, among other motions, the Company's ability to continue paying employee wages and benefits and maintain all customer warranty policies.

In addition, the Court authorized the Company's $135 million debtor-in-possession (DIP) financing.  The Court also approved the use of the Company's existing cash management systems and bank accounts, allowing the Company to issue payments and honor any outstanding checks, and to pay key trade vendors that sign a vendor support agreement.

"Today's approval of our first-day motions is encouraging and puts Gibson on a strong footing as we move forward with our reorganization with the support of a majority of our noteholders," said Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands.  "These actions, along with access to new financing, should reassure our employees, customers, dealers, and suppliers that we will continue to maintain daily operations and that it is business as usual for Gibson Brands."

With the support of the majority noteholders on the Restructuring Support Agreement and the Plan Term Sheet, the Company anticipates completion of the pre-negotiated process by the fourth quarter 2018.

The Company filed its voluntary petitions and plan of reorganization on May 1, 2018, 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.

ABOUT GIBSON 

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.