America will get a good idea by 5 p.m. Sunday whether the nation will completely lose its second largest bookstore chain or not. Borders is close to liquidation after the company said it will not seek approval for white knight Najafi's bid in U.S. Bankruptcy Court Friday.
Borders was close to approval on an agreed upon deal with Najafi Cos. for $215 million and an assumption of $220 million in debt in bankruptcy proceedings, but the deal has apparently fallen apart. Borders, based in Ann Arbor, Michigan, faced objection to the agreed upon deal with Najafi as creditors said Najafi could simply buy assets and liquidate the company.
Creditors preferred another bid from liquidators Hilco Merchant Resources and Gordon Brothers, saying it was stronger. Creditors argued that bid, a clear liquidation deal, involved more cash than the one from Najafi. Creditors hoped Najafi would submit a higher bid, but Najafi is standing by its original offer.
Borders now says it will accept bids until 5 p.m. Sunday and will give notice to the bankruptcy court if no other bid emerges. Regardless, the odds that Borders will soon liquidate, closing its remaining 400 bookstores, are strong.
Read the rest of the article at International Business Times
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