Friday, May 4, 2018

Up or down?

There's this unfounded elation that Gibson's bankrupt so everyone's instruments are now worth a fortune. Simple understanding of this- NO.

Let's be clear that the company had filed papers under Chapter 11 of their laws, meaning, there is no liquidation, just a reorganizing of the finances & a temporary change of ownership. In the mean time, they are getting more loans to make sure the core business, which is instrument-making, gets no interruption. It is the revenue from this core business activity that would settle the proceeding once proven that Gibson is indeed a profitable venture only to be brought down by other commercial involvements which are not core to the business. 

The local news (CNA) covered this in their media space & the comments that followed indicated a delusional following. People are assuming that bankruptcy is indeed a termination of the business which is definitely not the case. 

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