In Tuesday morning’s Omnibus hearing, Manhattan bankruptcy court judge Martin Glenn granted the bulk of Borders’ motions, including an extension of the deadline to renegotiate existing leases by an additional 90 days to September 14. The court also gave final approval on the $505 million credit facility pending several changes are made, including a provision giving the unsecured creditors committee $125,000, up from $50,000, to fund investigations of claims of secured lenders. Judge Glenn empathized with part of the creditors’ objection, noting that “when I look at the incremental cost of new money coming in, it’s pretty steep,” but he […]
Finance
Briefs: BN Stock Drops to All-Time Lows; Former Mobster’s Book Events Cancelled; And More
Wall Street’s hate affair with Barnes & Noble‘s stock has continued. Shares fell more than a dollar yesterday, declining more than 9 percent, to finish at what was an all-time low. Until the market opened this morning, with prices down another 4 percent in early trading, standing at about $10.25 a share. (The overall market is down broadly today, with major indices down over 2 percent.) The company’s stock has fallen over 45 percent in less than a month. Two Chicago-area Borders book signings for former mobster Frank Calabrese Jr.‘s book Operation Family Secrets: How a Mobster’s Son and the […]
Borders Wants Normal Trade Terms–and Isn’t Getting Them
In a conference call with vendors on Friday, Borders executives reiterated the Pollyannish view that they have held since their “not a liquidity crisis” days, asking major suppliers to treat them like a normal business even though they are not. The company confirmed what’s been part of the plan since their bankruptcy filing: “the decision will be made early next week” (now this week) on how many additional stores to close. They are allowed a maximum of 75 additional store liquidations (though a Borders spokeswoman indicated that number is closer to 20 to 25 stores at the moment) and are […]
Borders Creditors Say Financing Favors Lenders Too Much–And Warn Bookseller Needs A Real Plan By June
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.” […]
NYSE Officially Delists Borders Stock; Seattle’s Best Complains Bankruptcy Will ‘Expose Trade Secrets’
The New York Stock Exchange somewhat obviously filed notice with the SEC that they will officially delist Borders stock on March 21, noting “the uncertainty as to the timing and outcome of the bankruptcy process, as well as the ultimate effect of this process on the Company’s common stockholders. Borders stock was suspended when they filed chapter 11, and even though the company had 10 days to appeal, they did not do so. SEC Filing Meanwhile, Starbucks subsidiary Seattle’s Best Coffee lodged an objection with the bankruptcy court on the grounds that Borders closing 200 stores could damage the company’s […]
Borders Lease Costs, Remaining Australian Stores for Sale, and Indie Closings
In reporting their recent quarterly earnings, Agree Realty took a $7.7 million impairment charge related to four leases for Borders stores that are currently being liquidated and another two stores that were closed earlier in the year. They retain exposure on additional store leases, as well as the lease on the Borders headquarters building in Ann Arbor. The company reduced their dividend by 22 percent because of Borders, which they say “should provide the company with sufficient liquidity and flexibility to accommodate any further development in the bankruptcy.”Crains Detroit Last Friday the Borders bankruptcy judge declined to hear arguments on […]