Ann Arbor, Mich. – Media retail store chain Borders Group (NYSE: BGP)
announced that it has received a $550 million financing commitment from GE
Capital, which the company says will provide it with "the financial
flexibility and an appropriate level of liquidity to move forward with its
strategy to reposition its business model and the Borders brand."
Once
funded, the new senior secured credit facility which matures in 2014 will
replace the company’s existing revolving senior credit and term loan
facilities.
The company cautioned that its current situation could also
potentially lead to a bankruptcy filing.
"Given the current environment
surrounding Borders, and in order to assure that the company can pursue its
efforts to position itself to properly implement its business plan, it is
prudent as well for Borders to explore alternative avenues, including the possibility
of an in-court restructuring," Borders president Mike Edwards said in a
statement.
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