Borders delays January payments to vendors no comments
Yesterday Borders announced that it would be delaying payments to its venders that were scheduled for payment at the end of January. A few days ago the struggling company announced a tentative commitment from GE Capital to bail it out until 2014. Borders stock is currently down another 12 percent on the news.
From the press release:
Borders Group, Inc. today reported that it will delay payments to certain parties — vendors, landlords and others — scheduled for the end of January. The delay is intended to help the company maintain liquidity while it seeks to complete a refinancing or restructuring of its existing credit facilities and other obligations. Borders has received a conditional commitment from GE Capital, Restructuring Finance for a $550 million senior secured credit facility.
Borders emphasized that it understands the impact of its decision on the affected parties, but that the company is committed to working with its vendors and other business partners to achieve an outcome that is in the best interest of Borders and these parties for the long-term.
