The U.S. Bankruptcy Court for the District of Delaware has officially approved Gibson's reorganization plan following its Chapter 11 bankruptcy case.
The court's approval paves the way for the closure of the case in early November, as the last major hurdle for the iconic company.
Brian Cox, Gibson's Chief Restructuring Officer, commented:
‘Today’s confirmation of our plan of reorganization is a significant milestone toward completing our restructuring and beginning a new chapter for Gibson as a stronger company with essentially no debt and a bright future… Focusing on our iconic brands and core musical instruments, Gibson is poised to continue as one of America’s premier manufacturers of musical instruments with a clear path that will benefit our customers, business partners, and employees over the long term.'
The company still has major practical steps to accomplish before getting back on its feet. Gibson lost most of its C-level leadership, with CEO Henry Jusziewicz losing most of his ownership share within the company.