Borders Group Inc. (BGP) said it has received a potential $550 million of financing from General Electric Co.'s (GE) financing arm, but the struggling bookseller said it still isnt ruling out "in-court restructuring."
Shares soared 43% to $1.15 after hours. As of the close, the stock had fallen 14% in the past year.
The troubled retailer said the commitment from GE Capital will provide it with "the financial flexibility and an appropriate level of liquidity to move forward with its strategy to reposition its business model and the Borders brand."
The commitment is contingent on several conditions, such as the successful syndication of $175 million of the senior credit line with other lenders, as well as $125 million of junior debt financing from vendors and other lenders.
"We view the refinancing route as the most practical, efficient and beneficial to all parties, and we are working with our vendors in this regard," said President Mike Edwards, but he noted that "it is prudent as well for Borders to explore alternative avenues, including the possibility of an in-court restructuring."
Borders has struggled mightily, hurt by sliding sales amid the rising popularity of ebooks. The company has said it is considering the sale of certain assets, and the company's second-biggest shareholder has pushed for a merger with bigger rival Barnes & Noble Inc. (BKS).
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;
More BGP MessagesLatest Borders Grp., Inc. BGP MessagesBorders Receives Refinancing Commitment from GE Capital
sterlingkuning • Thu Jan 27, 2011 5:46 PM (15 hours ago)59262587
In 2009 the stock went from .$49 on
peacerasta • Tue Jan 25, 2011 11:30 AM59149739
Latest News
maksim • Fri Jan 14, 2011 11:28 PM58834099
Yeah, I was just saying it was on
bonis • Fri Jan 14, 2011 3:48 PM58823408
Almost 16 mil shares traded. AVerage volume
maksim • Fri Jan 14, 2011 3:44 PM58823220
It has been in the works for a week.
maksim • Fri Jan 14, 2011 3:43 PM58823141
CNBC said refinance plan coming or in the works
bonis • Fri Jan 14, 2011 3:40 PM58822910
I believe I read somewhere that an announcement
maksim • Fri Jan 14, 2011 3:36 PM58822686
1.06 x 1.07 up 31%
sterlingkuning • Fri Jan 14, 2011 3:32 PM58822409
Bought some lottery tickets. 25 calls Jan
maksim • Fri Jan 14, 2011 3:28 PM58822120
Really quiet here today for what is going on.
Old Reliable • Fri Jan 14, 2011 3:26 PM58821989
Above $1 now...
MWM • Fri Jan 14, 2011 3:11 PM58821120
nice bounce
cha-ching • Fri Jan 14, 2011 1:00 PM58812227
ZLC - ahh I hope so!
sterlingkuning • Fri Jan 14, 2011 11:27 AM58805607
BGP low O/S and Ackman owns way too
MWM • Fri Jan 14, 2011 11:26 AM58805513
Needs some solid confirmation of financing arrangements and
sterlingkuning • Fri Jan 14, 2011 11:23 AM58805296
I just bought some here for the $1 break...
MWM • Fri Jan 14, 2011 11:20 AM58805100
Borders close to securing refinancing - New York Times
maksim • Thu Jan 13, 2011 11:46 PM58788534
I really think the latest moves to close
maksim • Thu Jan 13, 2011 4:06 PM58774221
Borders' Fate Could Be Decided Today
sterlingkuning • Thu Jan 13, 2011 10:06 AM58742672Bookmark With :
News 
Market Data 
Discover 
AI
