The EDM revolution has not been kind to one of America’s oldest guitar manufacturers. Standard and Poor recently downgraded the 116-year-old company’s credit rating to CCC-minus, from the already very low rating of CCC, indicating that a default is imminent.
Gibson Guitars has $145 million in outstanding bank loans that will come due on July 23 and another $377 million of outstanding secured notes maturing on Aug. 1.
“With multiple maturities looming and operating weakness ongoing, we believe Nashville-based Gibson Brands could default on its debt obligations over the next six months,” said S&P in a report from analyst Francis Cusimano Jr.
The famed guitar company, which sells the beloved Les Paul style guitar, must now find new investors to keep the company afloat, a challenge considering its low bond ratings. If it can’t resolve the crisis, Gibson will likely have to file for Chapter 11 bankruptcy protection this summer.
Latest posts by Dave Brooks (see all)
- Cressman and Kissel Take The Plunge in Okanagan Lake for Charity - March 19, 2018
- Run the Jewels Run the Jerseys - March 19, 2018
- Cirque du Soleil Performer Dies After Fall - March 19, 2018