Gibson Brands OK’d to solicit plan votes from two creditor classes

By Caroline Salls

Pittsburgh, Sept. 13 – Gibson Brands Inc. received court approval to solicit votes on an amended Chapter 11 plan from creditors in two classes, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Votes from creditors in plan classes six and eight must submit their ballots by 5 p.m. ET on Sept. 27.

Last week Gibson announced that all of the major stakeholders in its Chapter 11 cases have reached a global settlement regarding its plan of reorganization, which has been embodied in an amended plan.

Gibson said the amended plan reflects agreements by the company, an informal committee of secured noteholders and supporting principals Juszkiewicz and David Berryman in connection with adjustments to the restructuring support agreement to facilitate improved recoveries for unsecured creditors.

In addition, GSO Capital Partners LP, Koninklijke Philips NV and the committee have committed to support confirmation of the amended plan.

The amended plan also suspends discovery and litigation over the plan and some claims, settles threatened litigation against GSO, the supporting principals and others and provides an agreement for allowance and treatment of GSO’s and Koninklijke Philips’ claims against Gibson.

Specifically, general unsecured creditors will receive $4.25 million in cash, up from $2.75 million in the previous version of the plan, through a distribution trust and $4 million in profits interests, instead of litigation trust interests.

Holders of general unsecured claims against the Gibson Holdings debtor will receive 100% of profits interests not otherwise allocated under the plan.

The plan confirmation hearing is scheduled for Oct. 2.

Gibson Brands is a Nashville-based maker of musical instruments and consumer and professional audio. The company filed bankruptcy on May 1 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 18-11025.

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