Borders May Convert Delayed Payments to Interest-Bearing Debt, NYT Says
Borders Group Inc. held talks with publishers on converting delayed payments into interest-bearing debt as part of a proposal to restructure its finances, the New York Times reported, citing people briefed on the matter.
Borders, the second largest U.S. bookstore chain, also held talks with lenders including GE Capital and Jefferies Group Inc. on refinancing banks loans from a group led by Bank of America Corp., the newspaper said. Bank of America and GE Capital were among the institutions that provided Borders with as much as $970.5 million in revolving credit last year, the Times said.
Spokesmen for GE Capital and Jefferies declined to comment, the newspaper said. Mary Davis, a spokeswoman for Borders, said in a statement that the company is working with vendors to restructure their arrangements with Borders, the Times reported.
The company owed money to more than two dozen publishers, including as much as tens of millions of dollars to individual larger publishers, the newspaper said, citing publishers.
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