Gibson Seeks Refinancing,
Hires CFO

Gibson Brands issued a statement on Feb. 15 in response to numerous reports regarding the company's financial challenges and debt deadlines.

According to the statement, Gibson is working with Jefferies investment bank and has met all "current obligations to the bondholders, is in the process of arranging a new credit facility to replace the bonds, and fully expects the bonds to be refinanced in the ordinary course of business."

"These bonds expire as all fixed income instruments do at the end of their term," said Henry Juszkiewicz, Gibson chairman and CEO, via press release issued to PR Newswire. "While the musical instrument and pro-audio segments have been profitable and growing, they are still below the level of success we saw several years ago."

Gibson's strategy is focusing on its Philips brand as well as eliminating product segments that don't perform to expectations. According to company representatives, "Gibson expects this strategy will lead to the best financial results the company has seen in its history within the next year and an ability to pay back the company's debt in whole within several years."

"We have been monetizing assets like stock holdings, real property and business segments that could not achieve the level of success we expected," Juszkiewicz said. "By monetizing these assets, we can reduce debt and generate funds to contribute to business segments that are thriving. It is important to our business to get back to the financial success we had to achieve the best financial terms in the refinancing of our company."

Gibson has also announced that Benson Woo will return to the company as chief financial officer on or around Feb. 19.

"We are excited and pleased that Benson with be coming back to the Gibson Brands family," Juszkiewicz said. "He has a great knowledge of the industry, our current businesses and is liked and respected by everyone at Gibson and with whom he dealt. We are confident he will contribute to moving the company forward."