Struggling Gibson guitar company speaks out about its finances

The Gibson Brands Inc. G Force Automatic Tuning System can be seen on a Gibson Les Paul guitar at the 2017 Consumer Electronics Show (CES) in Las Vegas.

David Paul Morris | Bloomberg | Getty Images

The Gibson Brands Inc. G Force Automatic Tuning System can be seen on a Gibson Les Paul guitar at the 2017 Consumer Electronics Show (CES) in Las Vegas.

Struggling Gibson speaks out about its finances

Amid reports that will the company can be “running out of time” to sort out its finances, Nashville-based Gibson Brands on Thursday sought to assure observers that will its obligations will be met.

Gibson, the parent company of the well-liked guitar brand along using a variety of consumer audio products, issued a news Discharge to announce “that will the idea has met all current obligations to the bondholders, can be within the process of arranging a brand new credit facility to replace the bonds, along with fully expects the bonds to be refinanced within the ordinary course of business.”

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“We have been monetizing assets like stock holdings, real property along with business segments that will could not achieve the level of success we expected,” CEO Henry Juszkiewicz said within the news Discharge. “By monetizing these assets, we can reduce debt along with generate funds to contribute to business segments that will are thriving. the idea can be important to our business to get back to the financial success we had to achieve the best financial terms within the refinancing of our company.”

To give itself breathing room, Gibson has sold, or can be selling, quite a few properties in Memphis along with Nashville.

A senior credit officer at Moody’s Investors Service last week told Nashville Post Gibson can be “running out of time — rapidly.”

$375 million of secured notes will mature in a matter of months. If they are not refinanced by July 23, another $145 million in bank loans will become due, the Post reports.

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