The committee of unsecured Borders creditors filed an objection in bankruptcy court Thursday afternoon over the terms of Borders’ debtor-in-possession financing, which they view to be “unreasonable, overreaching and otherwise inappropriate.” The main contention is that Borders borrowed more money than they actually need, creating oversized fees in the millions of dollars for lenders, which only reduces the available funds to pay back creditors. The filing argues that the lenders used their leverage “to impose the objectionable provisions” which Borders was “forced to agree to,” knowing that the bookseller “was on the brink of collapse” before filing for Chapter 11.” […]
