rct Posted June 15, 2021 Share Posted June 15, 2021 https://finance.yahoo.com/news/gibson-rescuer-kkr-seeks-payout-191610802.html My post in that thread in response to uncertainty and such: "Over a long period of time Gibson sold bonds in order to raise capital. You sell bonds by taking a million and promising 1.2 million one year from now. Bonds are good for private equity, not shareholders, they don't sell stock. But they are bad when you don't honor them.Gibson didn't honor them, time and time again they did not make targeted returns to the bondholders. KKR is the bondholders. They took over the company by pushing out the top end(while retaining them in "consultancy", another ugly thing), and took ownership for only one reason, to get their bonds made whole.They don't want to own a guitar company, they just want their money. A way to untangle themselves from the guitar industry plus whatever weirdness goes along with Gibson, is to sell the debt to other investment types that are interested in owning a guitar company.Gibson has squat to say about it. The new boss may just be worse than the old boss, and the new boss will now own the previous debt plus a premium because the future is allegedly so rosy for Gibson. But the bondholders are taking almost all of the sale of debt to repay themselves, and they are no doubt happy about it, especially if it works out for them."rct 2 Quote Link to comment Share on other sites More sharing options...
Twang Gang Posted June 16, 2021 Share Posted June 16, 2021 (edited) Never been a huge fan of KKR. They were very instrumental in popularizing the leveraged buyout using junk bonds to fund large purchases of big conglomerates that were successful because of their diversity (ie Beatrice Foods). Then KKR would break up the conglomerate and sell off companies destroying what had taken decades to build up. It was this sort of investing and divesting along with computerized day trading that redefined stock values. Company stocks, in the old days, used to be valued on a company's balance sheet and potential earnings. Researchers would actually visit a company's headquarters, interview the principles, inquire as to their strategies and plan for line of succession. Now we have crap like bitcoin. KKRs strategy may work out well for them, but not so much for the stockholders in the companies they buy and sell. Edited June 16, 2021 by Twang Gang Quote Link to comment Share on other sites More sharing options...
rct Posted June 16, 2021 Author Share Posted June 16, 2021 Yes, KKR works on behalf of the bondholders. Their sole function is to make the bondholders whole. At this point there isn't anyone sitting around plotting great guitars and making fabulous Les Pauls. They just want their money and you can't blame them. Henry wanted, and got, his. rct Quote Link to comment Share on other sites More sharing options...
jvi Posted June 17, 2021 Share Posted June 17, 2021 brand loyalty ? I like all gits and have no brand loyalty anymore, dont know if I ever did. 1 Quote Link to comment Share on other sites More sharing options...
badbluesplayer Posted June 17, 2021 Share Posted June 17, 2021 Next time around, I'm going into finance. 1 Quote Link to comment Share on other sites More sharing options...
Sgt. Pepper Posted June 17, 2021 Share Posted June 17, 2021 (edited) I just read Henry J is launching (like it’s a rocket ship or space craft) a health care company in Nashville. Lord help those poor people. I saw it on the net. It could be fake but I don’t think so. https://www.bizjournals.com/nashville/news/2020/10/22/former-gibson-ceo-juszkiewicz-launches-caremoat.html Edited June 17, 2021 by Sgt. Pepper Quote Link to comment Share on other sites More sharing options...
slimt Posted June 17, 2021 Share Posted June 17, 2021 2 minutes ago, Sgt. Pepper said: I just read Henry J is launching (like it’s a rocket ship or space craft) a health care company in Nashville. Lord help those poor people. I saw it on the net. It could be fake but I don’t think so. If its true. Its like any other insurance company. They will take your money and give nothing in return. 1 Quote Link to comment Share on other sites More sharing options...
Sgt. Pepper Posted June 17, 2021 Share Posted June 17, 2021 9 minutes ago, slimt said: If its true. Its like any other insurance company. They will take your money and give nothing in return. That is what he did with the prior company he was CEO of. 2 Quote Link to comment Share on other sites More sharing options...
zigzag Posted June 17, 2021 Share Posted June 17, 2021 47 minutes ago, Sgt. Pepper said: I just read Henry J is launching (like it’s a rocket ship or space craft) a health care company in Nashville. This may bode well for all of us. If he brings his business sense to the healthcare industry, the entire industry could collapse. Quote Link to comment Share on other sites More sharing options...
badbluesplayer Posted June 18, 2021 Share Posted June 18, 2021 Captain X. The guy had the vision of a bat and everybody was all like "Look! It's Harley Freakin' Davidson." Quote Link to comment Share on other sites More sharing options...
jvi Posted June 18, 2021 Share Posted June 18, 2021 I thought Henrey J saved the company and then made great gits for a while, bought the company for 5 mil didnt he ? ( and partners ) I thought that era gits were great. Quote Link to comment Share on other sites More sharing options...
Sgt. Pepper Posted June 18, 2021 Share Posted June 18, 2021 (edited) 37 minutes ago, jvi said: I thought Henrey J saved the company and then made great gits for a while, bought the company for 5 mil didnt he ? ( and partners ) I thought that era gits were great. And then he didn't and if he was so great he would still be CEO. He did save Gibson and then extended his hand and instead of just concentrating on making great guitars had to delve into to may business ventures and I think borrowed way too much money that the company could not pay back. Then they file for bankruptcy and ousted him and now as you know JC, a Canadian is in charge, or maybe just a figure head. Edited June 18, 2021 by Sgt. Pepper Quote Link to comment Share on other sites More sharing options...
zigzag Posted June 18, 2021 Share Posted June 18, 2021 MBAs are the bane of modern business. Quote Link to comment Share on other sites More sharing options...
rct Posted June 18, 2021 Author Share Posted June 18, 2021 4 hours ago, Sgt. Pepper said: ...Then they file for bankruptcy and ousted him... Nope. A condition of the filing was that he and several top end folks be retained as consultants. Only two disclosures, him for 2 mil a year for minimum 2 years, second in command at 1 mil a year for two years, the rest not disclosed. rct Quote Link to comment Share on other sites More sharing options...
Sgt. Pepper Posted June 18, 2021 Share Posted June 18, 2021 (edited) 4 minutes ago, rct said: Nope. A condition of the filing was that he and several top end folks be retained as consultants. Only two disclosures, him for 2 mil a year for minimum 2 years, second in command at 1 mil a year for two years, the rest not disclosed. rct I wish that would happen to me. So they retain the guy and pay him when he ran the company into the ground. That is some military logic there. It’s been over 2 years I think . . . so thanks for the memories. Edited June 18, 2021 by Sgt. Pepper Quote Link to comment Share on other sites More sharing options...
rct Posted June 18, 2021 Author Share Posted June 18, 2021 2 hours ago, Sgt. Pepper said: So they retain the guy and pay him when he ran the company into the ground. It was actually him making that a condition to be met before he would turn it over to the bankruptcy court and the bondholders. They didn't retain him at all, he used a crow bar and some grease to set up himself and a couple buds. rct Quote Link to comment Share on other sites More sharing options...
Sgt. Pepper Posted June 18, 2021 Share Posted June 18, 2021 1 minute ago, rct said: It was actually him making that a condition to be met before he would turn it over to the bankruptcy court and the bondholders. They didn't retain him at all, he used a crow bar and some grease to set up himself and a couple buds. rct Makes me glad I no longer own any. Quote Link to comment Share on other sites More sharing options...
badbluesplayer Posted June 19, 2021 Share Posted June 19, 2021 Didn't Henry have a partner that owned 39% also? The guy's name was White or something. Never heard of that guy. He just kept his head down. Quote Link to comment Share on other sites More sharing options...
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