01-14-2011, 09:39 AM | #1 |
Wizard
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Refinancing Borders
(Reuters) - Bookseller Borders Group Inc told publishers in a meeting it was close to securing refinancing from GE Capital and other lenders, the New York Times reported, citing people familiar with the matter.
In the meeting Thursday, Borders asked publishers to provide money for a large portion of the company's debt as a loan, the paper said, adding that one publisher said the plan laid out by Borders was not a convincing strategy for turning around the company. Last week, sources told Reuters that the bookseller has hired FTI Consulting Inc to assist in analyzing its finances and is in talks with GE Capital about new debt that could replace its existing credit line. Borders was not immediately available for comment. |
01-14-2011, 11:16 AM | #2 |
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Borders On The Border: The Saga Continues (TM)
Last edited by Anthem; 01-14-2011 at 11:31 AM. |
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01-14-2011, 02:55 PM | #3 |
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Meh, not really news. Borders is poorly managed by a bunch of idiots who care more about what's in it for them than they do about any kind of effort to save the company. Get rid of them and get some real quality managers in there, and you'll see Borders smoke everyone out there. But so long as the present management stays, they're sunk.
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01-14-2011, 03:29 PM | #4 |
Curmudgeon
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Borders corporate management sucks, but they have wonderful store personnel. B&N corporate management seems to know how to run a company, but they've driven me away from several of their stores because of their indifferent or borderline (and sometimes over the border) hostile store personnel. Why can't there be a company that can treat the customers right and get the home-office stuff right, too?
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01-14-2011, 03:49 PM | #5 |
»(°±°)«
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Meanwhile, Borders are offering the Kobo Wireless eReader for $99.99 in a 4-day limited promo with coupon (ends 17 January).
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01-14-2011, 09:57 PM | #6 |
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I think because it's against the law to have too many nice people in one company. It was signed into law in the 1970's after a series of major explosions caused by excessive happiness.
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01-15-2011, 01:46 AM | #7 |
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01-15-2011, 09:01 AM | #8 | |
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They're looking for US$500 million in refinancing from GE Capital:
http://www.msnbc.msn.com/id/41084574...s-us_business/ Quote:
Tick... Tick... Tick... |
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01-15-2011, 01:23 PM | #9 |
Is that a sandwich?
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If GE Capital does give them $500 million, the interest on that note would be junk-like status. I'm guessing 9-10%. They are probably using their unsold inventory as collateral.
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01-15-2011, 02:47 PM | #10 |
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They're also working on indefinite credit from their wholesalers and publishers. That means authors are also in a possible no-pay situation. Neil
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01-15-2011, 02:55 PM | #11 |
Wizard
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How about Books A Million, (www.bam.com)? Are they a quality company?The US Capital has three book chains: Borders, BN and BAM. I guess we could stand to loose one of the three. Now I am dating myself when I say - was sad to see Crown Books go out of business.
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01-15-2011, 03:49 PM | #12 | |
reader
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Quote:
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01-15-2011, 09:27 PM | #13 |
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For what it's worth, I was once a stockholder in Just For Feet, and about a month before it filed for bankruptcy, it also secured refinancing from some lenders. It also had been having problems, and I thought that when they secured refinancing, that meant that the worst was over, and that they were turning it around. In reality, the refinancing was apparently a bridge loan to tide them over until they could file for bankruptcy on their terms, instead of on the terms of one of their creditors. I'm not saying that Borders is in the same predicament, but I sure wouldn't be buying their stock right now.
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01-15-2011, 09:29 PM | #14 |
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Depends on how you evaluate stock. I have no dollars to invest at the moment but to a contrarian investor this is exactly the sort of thing they want to see.
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01-18-2011, 09:49 AM | #15 | |
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