A famous guitar making company that's been in business more than 100 years could be headed into bankruptcy.
A report by the Nashville Post in early February states Gibson Guitar is facing huge debt obligations . Gibson's Chief Financial Officer, Bill Lawrence, left the firm six months before $375 million of senior secured notes were due to mature. Lawrence had been working for the company for little over a year before he left, reports say.
"Another $145 million in bank loans will come due immediately if those notes, issued in 2013, are not refinanced by July 23," the Nashville Post report says .
Bond holders are frustrated.
The Gibson company recently sold a former Baldwin Piano warehouse in The Gulch. The warehouse was sold for $6.4 million, the Nashville Post says .
"It also is trying to sell the nearby Valley Arts building on Church Street, although that deal has landed in court. But those sales — the Valley Arts property will bring in about $11 million — are unlikely to make a big enough dent to stave off a painful overhaul," the Nashville Post report says .
Gibson Guitar was founded by Orville Gibson in 1902 in Kalamazoo, Michigan.