Stay tuned... (UPDATED - Gibson files Chapter 11)

[Dave W]

According to poster Inside Guy at MLP --  now a former Gibson employee but still privy to inside information -- an era has ended and an official press release is coming on Monday. He didn't come right out and say it was about Gibson but he's not prone to deceiving people.

In the meantime, I'm warming up the ol' pipes.

[Grog]

[Basvarken]

Any news yet?

[Alanko]

The Six Wives of Henry JIII.

[Dave W]

Any news yet?

Nothing yet, maybe it isn't going to happen today. Inside Guy made it clear earlier today that he was definitely talking about Gibson. "Big news coming about the future of Gibson. The whole Gibson company past and present are eagerly waiting too." I'm sure he has to protect his sources and can't say more yet. In any case, he's a no-BS guy who hasn't misled in the past.

[FrankieTbird]

According to poster Inside Guy at MLP -- 

My Little Pony?

[Dave W]

And here it is, a day late: Gibson will be reorganizing under Chapter 11.

Gibson Brands Reaches Restructuring Support Agreement to Reorganize Around Core Businesses

Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands, and David Berryman, Gibson's President, will each continue with the Company upon emergence from Chapter 11 to facilitate a smooth transition during this change of control transaction and to support the Company in realizing future value from its core business.

The way I read this, the "change of control" Henry and Berryman will be gone after Gibson emerges from Chapter 11. The financiers will own the company.

Keep in mind that this will be subject to bankruptcy court approval.  OTOH this kind of action isn't unusual.

[Dave W]

Further from Bloomberg and Reuters.

From the Bloomberg article: According to court filings, current noteholders include Silver Point Capital, Melody Capital Partners LP, and funds affiliated with KKR Credit Advisors.

[Rob]

I'm not surprised that they held the release until the first of the month.

[Dave W]

From one of the articles: "Gibson's existing equity will be canceled under a proposed Chapter 11 plan, which requires court approval, but Mr. Juszkiewicz will stay on as $2.1 million a year consultant to the new owners. Mr. Berryman is being retained for one year at a salary $3.35 million. Both men will each receive 5-year warrants for up to 2.25% of the reorganized company's stock. "

Translation: they'll be there in name only for a year with a nice severance and will have an option to own a small part of the new Gibson.

[Granny Gremlin]

Aaaaaaaaaaaaaaaaaaaaaaand that is why Gibsons cost so much.  So Henry J can live the life of Riley under a golden parachute.

[slinkp]

What do you think was the combined salary of the 15 people they just canned from the custom shop?
Do you think it added up to $5.45 million? Hell no.

[gearHed289]

Stolen from facebook. 

[Dave W]

Aaaaaaaaaaaaaaaaaaaaaaand that is why Gibsons cost so much.  So Henry J can live the life of Riley under a golden parachute.

What do you think was the combined salary of the 15 people they just canned from the custom shop?
Do you think it added up to $5.45 million? Hell no.

It does look excessive, but keep in mind that it's really a form of compensation for their equity in the company. Even though neither of them will be poor, they've lost millions in equity.

[uwe]

Henry J was just demoted to ... digger .