Gibson Creditors Want New CEO Before Rescue Deal
- Bondholder group wants majority control of guitar maker
- Chief executive seeks to refinance as debt deadline looms
A Gibson Guitar Corp. employee tests the sound of a guitar at the company's factory in Nashville, Tennessee, U.S., on Friday, Oct. 7, 2011.
Photographer: Jeff Adkins/Bloomberg
Gibson Brands Inc.’s Chief Executive Officer Henry Juszkiewicz and his creditors both see value in the iconic guitar brand -- but that might be the only thing they see eye-to-eye on.
A group of bondholders advised by PJT Partners Inc. is pushing for a restructuring that would hand them ownership of the guitar maker and let them install new leadership, according to people with knowledge of the plans. 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, the people said. They asked not to be identified because the plans remain private.