Senior bondholders that include Kohlberg Kravis Roberts & Co. are taking over bankrupt guitar maker Gibson Brands Inc. under a chapter 11 plan approved Tuesday by a judge in Wilmington, Del., the Wall Street Journal reported. Bankruptcy Judge Christopher Sontchi said that he would sign off on the balance-sheet restructuring for the Nashville, Tenn.-based company, which sought protection from creditors in May in U.S. Bankruptcy Court in Wilmington to reduce its debt. Gibson said that it expects to exit bankruptcy early next month. From the start, Gibson’s proposed reorganization was designed to allow KKR and other senior secured bondholders to swap out their debt for ownership of the closely held private business. Other members of the bondholder group set to take control of Gibson include Melody Capital and Silver Point Capital. Initial shareholders also include Teachers’ Retirement System of Oklahoma, Wilks Brothers LLC, Commander Navy Installations Command Retirement Trust, Pepi Capital LP and Lord Abbett Bond-Debenture Fund Inc.
