After filing for bankruptcy following 116 years of being a leading name in the industry, Gibson Guitars has won approval for a loan of $135 million USD while the brand attempts a desperate restructure.
Digital Music News reports that U.S. Bankruptcy Court judge Christopher Sontchi was presented with a plan, that Gibson attorneys thought the brand should be awarded considering, in the past month, the brand has paid off $20 million in revolving debt.
When the brand filed for bankruptcy at the beginning of last month, it was reported that they had garnered a total of $500 million USD in debt. But now, this loan of $135 million USD will help keep the lights on at Gibson as they attempt a total restructure. This restructure is said to include liquidating its consumer electronic businesses, and a direct re-focus on musical instruments – what the brand is arguably known best for anyway.
However, this loan can only get the brand so far, and as sales of guitars continue to decline in the US, only time will tell if Gibson will still be left standing at year’s end.
