With 10 days to go until majority stakeholder Pershing Square Capital Management decides whether Borders should finally make good on the $42.5 million loan that’s already been renegotiated three times before, expect to see a lot more speculation from analysts and journalists about the book retailer’s ability to survive. One analyst, Lou Kasman of Marketing/Management Associates LLC, told AnnArbor.com “I don’t see strong cash flow, so meeting debt is questionable. Whether the lenders will change payment requirements is the question.” Turnaround consultant Jim McTevia is much more blunt: “Borders is a classic example of a company that is struggling for […]
