- Jan 9, 2012
- Reaction score
Best be a warm stool at that....
That sucks.EU begins to target US 'cultural products' for tariffs. Will guitars be included? Euro folk, are you ready to pay 25% more for a Gibson? Gibson, are you ready to lose the EU market?
They do over $1.5B in revenues. I am guessing cash flow must be about $75 million. All of the owners' value is in the equity. Bankruptcy makes the equity worth zero. The owners (Henry et al) have every reason to accommodate the wishes of new debt and equity in order to maintain a hundred to a couple hundred million worth of equity, which they lose the second the company files for BK.I agree with Peter that bankruptcy appears unavoidable for Gibson. Henry may cave in and leave the company to be sorted out by the creditors, but can THEY save it at this point? I have seen many cases where such a move proves to be only a delay in the inevitable.