Borders to Amend Bonuses, Seek Sale or Reorganization

Borders Group Inc. needs to change its executive bonus plan, a judge said, after a lawyer for creditors said the bankrupt book seller wants to pay key managers to stay while it considers a sale or reorganization.

Bruce Buechler, a lawyer for unsecured creditors, told U.S. Bankruptcy Judge Martin Glenn that the bonus plan was revised today so the five top executives, including Chief Executive Officer Mike Edwards and Chief Financial Officer Scott Henry, would be paid based on how much they recover for creditors under a sale or restructuring by Aug. 15.