Judge Approves Borders Bankruptcy Loan15 Mar, 2011 By: Chris Tribbey
A United States bankruptcy judge March 15 approved a $505 million bankruptcy loan for retailer Borders from General Electric Capital Corp.
Borders said it would use the loan, which it first announced Feb. 16 when it filed for bankruptcy, to fund operations as it closes 200 stores, and potentially as many as 75 more.
New York Judge Martin Glenn also gave Borders more time to deal with the leases for its stores, with the company now having until Sept. 14 to assume or reject expired leases. Lenders requested the extension.
“We now have financing to pay our vendors and other related parties in a timely fashion for post-petition goods and services, with the funding and related court approvals to operate our business effectively on a day-to-day basis,”
Borders Group president Mike Edwards said when the GE financing was first approved in February. “We look forward to continuing to meet the needs of our customer base and being a preeminent and innovative retailer in this space.”