Bondholders at troubled guitar giant Gibson - which is "running out of time - rapidly" to repay its debts and laid off more than 15 staff last week - are apparently seeking to oust CEO Henry Juszkiewicz.
Bloomberg reports that an anonymous group of bondholders advised by PJT Partners Inc are pushing to take ownership of the guitar maker as part of a restructuring, allowing them to install new leadership.
The holders aren’t anticipating strong enough earnings to attract new money for refinancing, and creditors are apparently reluctant to invest more funds while Juszkiewicz is in charge.
These plans would allow management to retain a small ownership stake, but Juszkiewicz has said he has no intention of giving up majority control.
The company needs to make $375 million in debt repayments by 23 July, otherwise an additional $145 million is due.
In a recent, wide-ranging interview, Juszkiewicz associated many of Gibson's problems with the guitar industry’s unwillingness to embrace innovation, a lack of new players and problems with retail in general.
