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Feb 14 – Feb 20, 2011 Edition Borders Gets Court OK for $505 Million in Financing
NEW YORK/AUTHORLINK NEWS/February 16, 2011Borders Group Inc. today announced that the U.S. Bankruptcy Court for the Southern District of New York has approved its $505 million in Debtor-in-Possession (DIP) financing led by GE Capital, Restructuring Finance. Borders will use the funds, among other things, to pay vendors, publishers and other suppliers for post-petition goods and services and to operate its day-to-day business.
In addition, Borders announced that the Court has approved additional First Day Motions so that ongoing business will not be disrupted. In this regard, Borders received permission from the Court to, among other things:
Honor its Borders Rewards and Borders Rewards Plus programs, gift cards and other customer programs; Pay its employee wages and benefits substantially in the ordinary course of business; and, Continue to maintain its cash management systems.
Mike Edwards, President, Borders Group, stated, We are moving quickly right at the outset of the Chapter 11 process to restore stability to our business and protect our enterprise and its brand. We now have financing to pay our vendors and other related parties in a timely fashion for post-petition goods and services, with the funding and related court approvals to operate our business effectively on a day-to-day basis. We look forward to continuing to meet the needs of our customer base and being a preeminent and innovative retailer in this space.
Borders filed to reorganize its U.S businesses under Chapter 11 on February 16, 2011 in the U.S. Bankruptcy Court for the Southern District of New York. The case number is 11-10614(MG). The companys international franchised operations were not part of the filing.
Additional information about the recapitalization is available at www.bordersreorganization.com or by telephone at (877) 906-7675.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a leading specialty retailer of books as well as other educational and entertainment items. Online shopping is offered through borders.com
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