Prospective investors want a new chief executive at Gibson Brands Inc. before unlimbering their wallets to help the embattled company.
A recent Bloomberg report says a group of debtholders advised by PJT Partners Inc. is pushing for a restructuring that would hand them ownership of the guitar maker and let them establish new leadership, according to sources that Bloomberg refers to only as "people with knowledge" of plans for the company.
“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 (Gibson CEO Henry) Juszkiewicz is still in charge, the people said,” according to Bloomberg.
The sources for the story apparently asked to remain unnamed. The debtholders claim to control some two-thirds of Gibson’s outstanding debt, notes that come due in August.