Gibson
- Thread starter pucho812
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Cool, I wonder what they used for money.... ?CJ said:
Uli might be able to afford it but not sure why.
Buying it to acquire the iconic guitar brand and scraping off all the consumer electronics (that have nothing to do with MI) might work for somebody, but many of the music industry serial acquirers are already leveraged up with debt.
JR
Ulrich B. is a keyboard player; I don't think he is really interested in guitars. He didn't want his name on the Bugera line of guitar amps.JohnRoberts said:
He is actually pretty strategic about his purchases, not more for the sake of more.abbey road d enfer said:
JR
CJ
Well-known member
Cost cutting has been underway for years, but now it will be more motivated.CJ said:
JR
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Some actual news (not fake) about the Gibson bankruptcy. Blackstone Group is objecting to the bankruptcy financing saying it deprives them of a prepayment penalty while leaving them open to liability. The court approved $135M of bankruptcy financing of which $100M goes to pay off existing loans. An interim court order gave Gibson permission to tap $25M of the financing but several creditors are complaining about this debtor in possession financing.
It's always something.... :
JR
It's always something.... :
JR
pucho812
Well-known member
I'm an idiot... what does that mean exactly?
Sounds like the vultures are fighting over the scraps. :pucho812 said:
When a company declares bankruptcy the stockholders get zero and the creditors (debt holders and vendors) get to decide how to manage what is left. A bankruptcy judge appoints a trustee (usually a lawyer) and rules over issues decided by a creditors committee, who have more or less influence based on how much they are owed. Blackstone Group, GSO capital, and Bank America are major debt holders. After a company declares bankruptcy they can borrow more money since they can't go bankrupt again while the committee is operating as debtor in possession.
GSO is complaining to the bankruptcy judge that it is losing out on a prepayment penalty it expected. Since the judge has to approve all such payments during this bankruptcy work out period, this is a matter for the court. I wouldn't expect the judge to look favorably on them getting much extra vigorish, but its probably enough money to have their lawyers ask for it.
JR
Pip
Well-known member
IMO Gibson has been overpriced and of questionable building quality for quite a while. I own many Gibson's both electric and acoustic. I think their acoustics still shine in many ways and always did over the electric counterparts.
The electric line has been fractured and overpriced for almost two decades. $1000.00 more per unit for back body binding?! Ouch! I could also go on and on about the design flaws and so forth but we enter into the aesthetic and such things are highly debatable, what isn't is the prices and the odd selections. Other manufacturers have always met many price points and been transparent about the value differences Gibson not so much.
P.S. Heritage Guitars are still out there.
https://heritageguitars.com/
The electric line has been fractured and overpriced for almost two decades. $1000.00 more per unit for back body binding?! Ouch! I could also go on and on about the design flaws and so forth but we enter into the aesthetic and such things are highly debatable, what isn't is the prices and the odd selections. Other manufacturers have always met many price points and been transparent about the value differences Gibson not so much.
P.S. Heritage Guitars are still out there.
https://heritageguitars.com/
pucho812
Well-known member
JohnRoberts said:Sounds like the vultures are fighting over the scraps. :
When a company declares bankruptcy the stockholders get zero and the creditors (debt holders and vendors) get to decide how to manage what is left. A bankruptcy judge appoints a trustee (usually a lawyer) and rules over issues decided by a creditors committee, who have more or less influence based on how much they are owed. Blackstone Group, GSO capital, and Bank America are major debt holders. After a company declares bankruptcy they can borrow more money since they can't go bankrupt again while the committee is operating as debtor in possession.
GSO is complaining to the bankruptcy judge that it is losing out on a prepayment penalty it expected. Since the judge has to approve all such payments during this bankruptcy work out period, this is a matter for the court. I wouldn't expect the judge to look favorably on them getting much extra vigorish, but its probably enough money to have their lawyers ask for it.
JR
Thanks for the explanation. That makes more sense
Gibson Bankruptcy was back in the financial news again, not because something happened but mainly because it hasn't (yet).
The main backer supplying bridge financing is still supportive and, and the top 2 executives/owners are getting paid millions to oversee this workout.
The expectation is that Gibson is a viable company (worth hundreds of millions) after the Phillips consumer stuff is sold off.
Time will tell...
JR
PS My friend who is master luthier there is still posting on facebook like nothing changed (he's big on skateboarding).
The main backer supplying bridge financing is still supportive and, and the top 2 executives/owners are getting paid millions to oversee this workout.
The expectation is that Gibson is a viable company (worth hundreds of millions) after the Phillips consumer stuff is sold off.
Time will tell...
JR
PS My friend who is master luthier there is still posting on facebook like nothing changed (he's big on skateboarding).
