Could this be Gibson's last straw?

fronobulax

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Interesting. I wonder if there really is a breech of contract or whether this is a way for Tronical to move ahead in the line if there is a Gibson bankruptcy?
 

Kitarkus

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Interesting. I wonder if there really is a breech of contract or whether this is a way for Tronical to move ahead in the line if there is a Gibson bankruptcy?

Smart thinking...a legal maneuver no doubt.
I've been watching Gibson with skepticism. Looking for a new LPJr...I like'em and want to get one. They want WAY too much money....and literally....there are almost none to be found anywhere. GC doesn't carry them. Sweetwater continuously says 'more coming soon'. Gibson even touted that they will be opening their own Gibson Store website for online purchases....but no LPJr.'s there either. I can't be sure whether Gibson is really pushing much in the way of new product out their doors. YMMV. Oh well...I'm not paying $1500 for an LPjr anyway.
 

Grassdog

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If we were looking at a Chapter 7 (liquidation), the secured creditors are going to be first in line no matter what and I don't think this legal manuever gets Tronical ahead of the secured pool. It's remotely possible it gives them some preference with the unsecured pool, but this is all just conjecture because none of us know exactly who has what priority in terms of liens/UCC filings and who may have provided corporate or personal guaranties.

It's much more likely they will file a Chapter 11, submit a plan of reorganization, and buy some time that way. There will be strict oversight by a Trustee and the court. Negotiations for the sale and control of the company will continue. This will likely go on a while.
 

Default

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Autotuners are cheaply built and hard to use, IMHO. Stupid idea to make them standard across the board.
 

walrus

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It's much more likely they will file a Chapter 11, submit a plan of reorganization, and buy some time that way. There will be strict oversight by a Trustee and the court. Negotiations for the sale and control of the company will continue. This will likely go on a while.

I tend to agree with this. This is long from over.

walrus
 

fronobulax

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If we were looking at a Chapter 7 (liquidation), the secured creditors are going to be first in line no matter what and I don't think this legal manuever gets Tronical ahead of the secured pool. It's remotely possible it gives them some preference with the unsecured pool, but this is all just conjecture because none of us know exactly who has what priority in terms of liens/UCC filings and who may have provided corporate or personal guaranties.

It's much more likely they will file a Chapter 11, submit a plan of reorganization, and buy some time that way. There will be strict oversight by a Trustee and the court. Negotiations for the sale and control of the company will continue. This will likely go on a while.

I defer to your experience and expertise. I have a vague recollection as a stockholder in a company that did something bizarre like split itself under chapter 11, sell one piece to new owners with no benefit to current stock holders and liquidate the other part. Somewhere in the process there was a pending lawsuit against the company and a judge or trustee assumed the litigation would go against the company. A pot of money was established to pay off a potential judgement and the pot was established and funded before some of the secured creditors received anything. My takeaway at the time was that someone had waved a magic wand and the result was the other party in the lawsuit effectively became a secured creditor and jumped to the head of the creditors line. It is quite possible that my memory or understanding are incorrect but that is why I raised the possibility.
 

chazmo

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Chapter 11 seems likely to be the next step, guys. You never know; someone may strike a deal with Gibson, but personally I doubt it.

Companies like this take a very, very long time to die.
 

adorshki

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I defer to your experience and expertise. I have a vague recollection as a stockholder in a company that did something bizarre like split itself under chapter 11, sell one piece to new owners with no benefit to current stock holders and liquidate the other part. It is quite possible that my memory or understanding are incorrect but that is why I raised the possibility.
That's what I was thinking yesterday, that Tronical's making sure to bring suit against the current entity while it still exists as the current entity.
But realized I have no understanding about whether that will enhance their chances of recovery.
The other possibility is that they simply got tired of waiting or perhaps there's even some kind of statute of limitations to bring suit in that court and the timing is simply coincidental.
 

bluesypicky

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Companies like this take a very, very long time to die.
Yup..... I was once employed by a company that went on under chapter 11 for a good 2 years until we got acquired by other company.
 
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