Gibson, as Strata-gee previously reported, filed for bankruptcy protection on May 1st in a pre-negotiated package with principal noteholders of the company’s substantial debt – debt that was now in default. But while that deal suggested a smooth path for the case through the bankruptcy court, it did not take into account the position of unsecured creditors, and especially Philips who describes itself as the largest unsecured creditor in the matter.
Gibson Cuts Debt Deal to Delay Payment Date
Gibson Brands has reached a deal with GSO Capital Partners, one of its existing lenders, in order to push back a loan payment by approximately two weeks to December 15th. The reason for the move was to try and time the payment such that it arrived later in the holiday season for better timing relative to their anticipated cash flow.