Borders Bankruptcy
Borders Group Inc. filed for Chapter 11 bankruptcy protection this morning following five years of turnaround efforts failed to return the Ann Arbor-based bookseller to well being.
The nation’s second-largest bookseller explained it would shut 30% of its merchants, or about 194 inside the coming weeks. There are 32 stores in Michigan.
It obtained $505 million in debtor in possession financing lead by GE Capital, Borders mentioned while in the submitting within the U.S. Bankruptcy Court, Southern District of New York. That was precisely the same court that dealt with the fast-track bankruptcies for General Motors and Chrysler.
Borders listed $1.27 billion in assets and $1.29 billion in liabilities in its Chapter eleven submitting. It has less than 50 creditors, mostly publishers. The top rated creditor is Penguin Putnam, that is owed $41.1 million.
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