Gibson faces last minute hitch in bankruptcy escape bid
Gibson Brands has suffered a last minute setback in its plans to escape bankruptcy. According to reports from the US legal and business press, the Office of the United States Trustees (a branch of the US Justice Department) this week filed an objection to the plan which would, in effect, have allowed Gibson to consolidate all but one of its Chapter 11 (bankruptcy protection) cases. In essence, the claim is that Gibson is seeking to avoid fees associated with the case.
Bloomberg Law ( https://www.bna.com/gibson-guitars-not-n57982094696/ ) reports: ‘Gibson needs to challenge objectionable creditor claims, obtain final approval of fees for attorneys and other professionals, and resolve fees it owes to the U.S. Trustee, among other things according to a Dec. 13 filing by the trustee, a Justice Department branch that oversees bankruptcy proceedings’.
The article goes on to add that the case could now continue for several months if the court, which will hear the matter today, 20th December, upholds the Trustee’s objection.
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