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New credit deal gives Borders a lifeline

New credit deal gives Borders a lifeline

Borders Group says it received a $550 million credit line from GE Capital, a lifeline that will help the struggling bookseller pay its vendors and stay afloat.
Its shares jumped 28 percent in aftermarket trading on the news.
The $550 million senior secured credit facility matures in 2014 and refinances the company's existing debt.
Borders and other booksellers have been hit hard as more people buy books online and at discount stores and grocers.
Borders, in Ann Arbor, Michigan, sparked fears it would file for bankruptcy in December after it said it would delay payments to some vendors.
Borders says the financing will help it fix its business, expanding online and cutting costs. It said it was still considering "the possibility of an in-court restructuring," implying a bankruptcy reorganization.


Updated : 2021-04-17 17:36 GMT+08:00