Gibson Guitars, fighting a looming deadline to meet financial obligations in regards to massive debts, may have been thrown a lifeline as the group that holds the bulk of the guitar company’s debt has opened the door to a potential restructure of the financial deal, under one condition: current CEO, Henry Juszkiewicz must relinquish his leadership of the company.

A source close to the company revealed in a new interview with Bloomberg that creditors will stop the funds if they don’t repay the necessary funds by July – a task that they believe to be very unlikely to be successful. With impending failure being predicted, creditors have put together a deal that would put control of the company in the hands of the bondholders and reduce the management’s ownership stake.

However Juszkiewicz, who has been at the helm of the company since 1986, has insisted that he has no intentions of stepping down.

Stubbornly rejecting the chance to work with the bondholders and claimed that they “have other intentions that are not necessarily my intentions,” Juszkiewicz has turned to Jeffries Group LLC to work on a refinancing package that will wipe out the existing debt.

Gibson have a $375 million bond due to be paid the 23rd of July and it will trigger $145 million to be added to that total if it’s not paid in full by then.

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