Bankruptcy Judge Christopher Sontchi late last week approved a $135 million debtor-in-possession financing plan that will help musical instrument maker Gibson Brands Inc. refinance some of its debt and stay on track to emerge from its chapter 11 case later this year, the Nashville Post reported. Attorneys for Nashville-based Gibson last week told Judge Sontchi that they were close to finalizing an agreement with bond investors and lenders but still needed to put their revised DIP plan before several other stakeholders. Those entities gave their approval prior to last Thursday’s hearing. “[This] decision assures that it remains business as usual at Gibson," Henry Juszkiewicz, chairman and CEO of Gibson, said in a statement. “This plan already has the critical support of our majority note holders." As part of Gibson’s Chapter 11 filing a month ago, Juszkiewicz and President David Berryman agreed to step down from their roles into advisory positions. The timing of those moves — which includes warrants to buy a combined 4.5 percent of the post-bankruptcy Gibson — has not yet been made public.
