NEW YORK, Feb. 16, 2011 /PRNewswire/ -- Borders Group Inc.
today announced that the U.S. Bankruptcy Court for the Southern
District of New York has approved
its $505 million in
Debtor-in-Possession (DIP) financing led by GE Capital,
Restructuring Finance. Borders will use the funds, among other
things, to pay vendors, publishers and other suppliers for
post-petition goods and services and to operate its day-to-day
business.
(Logo: http://photos.prnewswire.com/prnh/20060208/BORDERSGRPLOGO
)
In addition, Borders announced that the Court has approved
additional "First Day Motions" so that ongoing business will not be
disrupted. In this regard, Borders received permission from the
Court to, among other things:
- Honor its Borders Rewards and Borders Rewards Plus programs,
gift cards and other customer programs;
- Pay its employee wages and benefits substantially in the
ordinary course of business; and,
- Continue to maintain its cash management systems.
Mike Edwards, President, Borders
Group, stated, "We are moving quickly right at the outset of the
Chapter 11 process to restore stability to our business and protect
our enterprise and its brand. 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. We look forward to continuing to meet the needs of our
customer base and being a preeminent and innovative retailer in
this space."
Borders filed to reorganize its U.S. businesses under Chapter 11
on February 16, 2011 in the U.S.
Bankruptcy Court for the Southern District of New York. The case number is
11-10614(MG). The company's international franchised operations
were not part of the filing.
Additional information about the recapitalization is available
at www.bordersreorganization.com or by telephone at
877-906-7675.
About Borders Group, Inc.
Headquartered in Ann Arbor,
Mich., Borders Group, Inc. (NYSE: BGP) is a leading
specialty retailer of books as well as other educational and
entertainment items. Online shopping is offered through
borders.com. Find author interviews and vibrant discussions of the
products we and our customers are passionate about online at
facebook.com/borders, twitter.com/borders and
youtube.com/bordersmedia. For more information about the company,
visit borders.com/media.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
One can identify these forward-looking statements by the use of
words such as "expect," "believe," "planning," "possibility,"
"opportunity," "goal," "will," "may," "intend," "anticipates,"
"working toward" and other words of similar meaning. One can also
identify them by the fact that they do not relate strictly to
historical or current facts. These statements are subject to risks
and uncertainties that could cause actual results and plans to
differ materially from those included in the company's
forward-looking statements.
These risks and uncertainties include but are not limited to
(i) the ability of the company to continue as a going concern,
(ii) the company's ability to obtain Bankruptcy Court approval
with respect to motions in the Chapter 11 cases, (iii) the
ability of the company and its subsidiaries to prosecute, develop
and consummate one or more plans of reorganization with respect to
the Chapter 11 cases, (iv) the effects of the company's
bankruptcy filing on the company and the interests of various
creditors, equity holders and other constituents,
(v) Bankruptcy Court rulings in the Chapter 11 cases and the
outcome of the cases in general, (vi) the length of time the
company will operate under the Chapter 11 cases, (vii) risks
associated with third party motions in the Chapter 11 cases, which
may interfere with the company's ability to develop and consummate
one or more plans of reorganization once such plans are developed,
(viii) the potential adverse effects of the
Chapter 11 proceedings on
the company's liquidity or results of
operations, (ix) the ability to execute the company's
business and restructuring plan, (x) increased legal costs
related to the company's bankruptcy filing and other litigation,
(xi) the company's ability to maintain contracts that are
critical to its operation, to obtain and maintain normal terms with
its vendors, landlords and service providers and to retain key
executives, managers and employees.
In the event that the risks disclosed in the company's public
filings and those discussed above cause results to differ
materially from those expressed in the company's forward-looking
statements, the company's business, financial condition, results of
operations or liquidity, and the interests of creditors, equity
holders and other constituents, could be materially adversely
affected.
SOURCE Borders Group, Inc.