Now that Borders has sold its intellectual property and liquidated all remaining stores, the bankrupt retailer said in a court filing Tuesday that it intends to distribute remaining assets that have not been abandoned or sold already through a liquidating trust. “Holders of equity interests shall neither receive nor retain any property under the plan,” the company said in court papers, which means any remaining shareholders, whoever they are (stock traded at 2 cents on the pink sheets most recently) will end up with nothing. Creditors have until December 9 to approve or reject the plan, with a confirmation hearing […]
Finance
Borders Website Will Redirect to BN by October 14
As part of a $13.9 million deal approved in federal bankruptcy court late last month, Borders’ website will shut down by October 14 and redirect to BN.com. Over the weekend Barnes & Noble ceo William Lynch wrote a letter to Borders customers outlining the switch — and how to opt out if need be — as well as some words about the end of what was once the second-largest bookstore chain in the country. “Our intent in buying the Borders customer list is simply to try and earn your business,” Lynch wrote in the letter, which went to more than […]
Cengage Swings to Loss; Will Need to Refinance
Cengage had sales of $1.88 billion in their most recent fiscal year, ending in June, but the textbook company went from income of $47 million in the previous year to a loss of $37 million. Thirty-one percent of recents come from digital products and print-and-digital bundles. Bought by Apax Partners in the overvalued days of cheap and abundant credit in 2007 for $7.75 billion, the company still carries gross debt of $5.7 billion, which costs $480 million a year in interest. CEO Ron Dunn “says it will need to refinance within 18 months,” but also indicates to the FT there […]
Court Finally Approves BN’s Bid For Borders IP
Federal bankruptcy court Judge Martin Glenn finally approved Barnes & Noble’s $13.9 million winning bid for the bulk of Borders’ intellectual property on Monday afternoon after various privacy concerns voiced last week by an independent ombudsman were worked out by all parties. Reuters reported that at the hearing, Borders lawyer Andrew Glenn said the deal will give customers 15 days to opt out of the transfer by responding to an email that will be sent out once the deal closes, though that date has not been decided upon yet. Further information on how the more than 48 million Borders customers […]
BN’s Privacy Issues Are Holding Up the Other Borders IP Sales
A lengthy hearing in federal bankruptcy court Thursday did little to resolve a dispute over recommendations from a consumer privacy ombudsman that leaves Barnes & Noble’s $13.9 million bid for Borders’ intellectual property still in doubt. The asset purchase agreement called for a “drop-dead” deadline of September 30, but Judge Glenn flat-out said there was “no way” any deal could be reached in time at the current rate. For now, the parties will reconvene Monday, September 26 at 4 PM. As Judge Glenn heard statements from lawyers for Borders, the creditors committee, Barnes & Noble, as well as the privacy […]
Barnes & Noble Says Privacy Recommendations “Would Destroy the Value” of Borders IP Purchase
A battle is brewing in advance of the Thursday afternoon court hearing on Barnes & Noble’s $13.9 million bid to acquire most of Borders’ intellectual property, including their extensive customer databases. This dispute focuses on recommendations of consumer privacy ombudsman Michael St. Patrick Baxter, at Covington & Burling. Not only does BN say “implementing all of the recommendations contained in the report would destroy the value of the transaction from Barnes & Noble’s perspective,” but they accuse Borders of withholding those recommendations (as well as correspondence from the FTC and state Attorneys General) in advance of the auction. They write […]