Out Of Tune: Is Iconic Guitar Maker Gibson Headed For Bankruptcy?

NASHVILLE, TN -- Legendary Nashville-based guitar manufacturer Gibson is up against a financial wall and may be forced into bankruptcy. The 116-year-old maker of the iconic Les Paul solid-body electric guitar has more than $500 million in loans due in the next six months, according to a report from the Nashville Post, and its former chief financial officer recently returned following the previous CFO's departure after a little more than a year on the job.

CNBC reported that the company's chief executive officer, Henry Juszkiewicz, "is thought to be in a race against time to decide whether to exchange the company's debt, look to try and pay it off using his equity or try to declare the company bankrupt."

According to the Post, Juszkiewicz “fully expects the bonds to be refinanced in the ordinary course of business" and that he is developing "a thorough strategic and budget planning process."

“It is important to our business to get back to the financial success we had to achieve the best financial terms in the refinancing of our company,” he said, according to the Post.

A guitar, once owned and used by Keith Richards of the Rolling Stones, stands on display at Christie's December 10, 2004 in New York City. (Photo by Spencer Platt/Getty Images)