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July 11 – July 17, 2011 Edition Borders Liquidation Appears Likely
NEW YORK, NY/AUTHORLINK NEWS/July 14, 2011In Borders bankruptcy hearing this morning, Judge Martin Glenn dismissed objections from landlords seeking to delay a stalking horse bid by BB Brands for the sale or liquidation of the company. Judge Glenn said he would not put all of this off. This sales process is moving forward.
Glenn approved revised bidding procedures submitted yesterday, paving the way for the Hilco/Gordons Brothers group to bid $215.1 million with no breakup fee to liquidate or buy Borders, thus putting Hilco in a stalking horse position. (In a corporate bankruptcy in which the corporation wishes or is required to sell its assets, a stalking horse is an initial bid on those assets by a third party chosen by the corporation, done to ensure that the bankrupt corporation does not have to settle for unacceptably low prices for its assets).
BB Brands dropped out under pressure from publishers who objected to its right to liquidate assets rather than purchase them. However, the group could still return as a bona fide bidder.
Landlords and other creditors have until Monday July 18 at 4pm, rather than this afternoon, to submit their sale objections. If no going-concern bidder comes forth by 5 p.m. Sunday, then the company will be forced to hold a sale of all of its assets. The sale approval hearing is slated for Thursday July 21. A liquidation of the chain must close on or before Friday July 22. If there is an auction, it will be held on Tuesday afternoon. A going-concern sale must close by July 29.
Barnes & Noble may make an offer for certain assets and could possibly team up with a liquidator.