Meanwhile Bloomberg are reporting that a group of bondholders, who control over two thirds of the $375 million notes, definitely do want a restructuring. The restructuring would give them ownership of the brand and mean they could put in new leadership which would enable them to get credit.
“The holders don’t expect Gibson’s earnings will be strong enough to attract new money for a refinancing to head off a default looming later this year, and creditors are reluctant to invest more funds while Juszkiewicz is still in charge.” note Bloomberg. However Juszkiewicz, who has more than 30 years at the helm of the iconic Nashville brand, doesn’t want to give up majority control. Juszkiewicz told Bloomberg “[The bondholders are] trying to do everything possible to put the company in a worse position, and get us in a situation where they’re exclusively talking to us. But factually, we’ve made our interest payments, fulfilled our obligations, and our intent is to pay back all bondholders.”