BORDERS GROUP BANKRUPTCY NEWS Issue Number 2
-----------------------------------------------------------------
Copyright 2011 (ISSN XXXX-XXXX) February 18, 2011
-----------------------------------------------------------------
Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001
-----------------------------------------------------------------
BORDERS GROUP BANKRUPTCY NEWS is published by Bankruptcy
Creditors' Service, Inc., 572 Fernwood Lane, Fairless Hills,
Pennsylvania 19030, on an ad hoc basis (generally every 10 to 20
days) as significant activity occurs in the Debtors' cases. New
issues are prepared by Michille Deiparine, Ivy B. Magdadaro and
Peter A. Chapman, Editors. Subscription rate is US$45 per issue.
Any re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
=================================================================
IN THIS ISSUE
-------------
[00012] BORDERS GETS COURT NOD TO LIQUIDATE 200+ STORES
[00013] BORDERS STORE CLOSING SALES TO COMMENCE ON FEB. 19
[00014] BORDERS GETS INTERIM ACCESS TO $400-MIL. IN DIP FINANCING
[00015] DEBTORS' MOTION TO OBTAIN $505-MIL. IN DIP FINANCING
[00016] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL
[00017] DEBTORS' MOTION TO USE EXISTING CASH MANAGEMENT SYSTEM
[00018] DEBTOR'S MOTION TO MAINTAIN EXISTING BANK ACCOUNTS
[00019] DEBTORS' MOTION TO CONTINUE USING BUSINESS FORMS
[00020] DEBTORS' MOTION TO CONTINUE USE OF CORPORATE CREDIT CARDS
[00021] DEBTOR'S MOTION TO EXTEND TIME TO COMPLY WITH SEC. 345
[00022] DEBTOR'S MOTION TO CONTINUE INTERCOMPANY TRANSACTIONS
[00023] DEBTORS' MOTION TO HONOR PREPETITION EMPLOYEE OBLIGATIONS
[00024] DEBTORS' MOTION TO HONOR PREPETITION VENDOR OBLIGATIONS
[00025] DEBTORS' MOTION TO HONOR PREPETITION CUSTOMER PROGRAMS
[00026] DEBTORS' MOTION TO PAY PREPETITION TAXES
[00027] BORDERS' BANKRUPTCY FILING TRIGGERS PAYMENT OBLIGATIONS
[00028] BORDERS RECEIVES NOTICE OF STOCK DELISTING FROM NYSE
[00029] BORDERS' BANKRUPTCY MAY THWART BILL ACKMAN'S MERGER PLANS
[00030] MALL OWNERS SEEK TO APPEAR IN BORDERS' BANKRUPTCY CASE
KEY DATE CALENDAR
-----------------
02/16/11 Voluntary Chapter 11 Petition Date
03/18/11 Deadline to Provide Utilities with Adequate Assurance
04/05/11 Deadline to File Schedules of Assets and Liabilities
04/05/11 Deadline to File Statement of Financial Affairs
04/05/11 Deadline to File Lists of Contracts and Leases
05/17/11 Deadline to Remove Actions Pursuant to F.R.B.P. 9027
06/16/11 Expiration of Debtors' Exclusive Plan Proposal Period
06/16/11 Deadline to Make Decisions About Lease Dispositions
08/15/11 Expiration of Debtors' Exclusive Solicitation Period
02/15/13 Deadline for Debtors' Commencement of Avoidance Actions
-----------------------------------------------------------------
[00012] BORDERS GETS COURT NOD TO LIQUIDATE 200+ STORES
-----------------------------------------------------------------
[00013] BORDERS STORE CLOSING SALES TO COMMENCE ON FEB. 19
-----------------------------------------------------------------
See prior related entry at [00007] (Borders Group to Close 200+
Stores Under Bankruptcy).
Chief Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the
Southern District of New York has approved Borders Group Inc.'s
previously-disclosed strategic Store Reduction Program to
facilitate its reorganization and repositioning. READ FULL STORY
-----------------------------------------------------------------
[00014] BORDERS GETS INTERIM ACCESS TO $400-MIL. IN DIP FINANCING
-----------------------------------------------------------------
[00015] DEBTORS' MOTION TO OBTAIN $505-MIL. IN DIP FINANCING
-----------------------------------------------------------------
Judge Arthur J. Gonzales of the U.S. Bankruptcy Court for the
Southern District of New York has granted Borders Group, Inc. and
its debtor affiliates interim access to approximately $400
million of a proposed $505 million debtor-in-possession financing
facility led by GE Capital, Restructuring Finance. READ FULL STORY
-----------------------------------------------------------------
[00016] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL
-----------------------------------------------------------------
See prior related entry at [00015] (Debtors' Motion to Obtain
$505-Mil. in DIP Financing.)
The Debtors have sought and obtained a Court order allowing them
to use of their Cash Collateral on an interim basis, in
accordance with a prepared budget. READ FULL STORY
-----------------------------------------------------------------
[00017] DEBTORS' MOTION TO USE EXISTING CASH MANAGEMENT SYSTEM
-----------------------------------------------------------------
In the ordinary course of business, the Debtors use a cash
management system, which is similar to those utilized by other
large retail companies that operate in numerous locations and
across multiple distribution channels, to efficiently collect,
transfer, and disburse funds generated by their business
operations. READ FULL STORY
-----------------------------------------------------------------
[00018] DEBTOR'S MOTION TO MAINTAIN EXISTING BANK ACCOUNTS
-----------------------------------------------------------------
In connection with their Cash Management System, the Debtors
maintained about 135 bank accounts, a schedule of which is
available for free at:
http://bankrupt.com/misc/Borders_BankAccounts.pdfREAD FULL STORY
-----------------------------------------------------------------
[00019] DEBTORS' MOTION TO CONTINUE USING BUSINESS FORMS
-----------------------------------------------------------------
The Debtors sought and obtained an interim order from the Court
allowing it to continue using their correspondence and business
forms, including, but not limited to, purchase orders, multi-copy
checks, letterhead, envelopes, promotional materials, and other
business forms, substantially in the forms existing immediately
before the Petition Date, without reference to their status as
debtors-in-possession. READ FULL STORY
-----------------------------------------------------------------
[00020] DEBTORS' MOTION TO CONTINUE USE OF CORPORATE CREDIT CARDS
-----------------------------------------------------------------
In the ordinary course of business, the Debtors customarily pay
for a variety of their expenses, including employees' business-
related expenses incurred in performing their employment
obligations and small accounts payable at the individual store
level with company credit cards. READ FULL STORY
----------------------------------------------------------------
[00021] DEBTOR'S MOTION TO EXTEND TIME TO COMPLY WITH SEC. 345
-----------------------------------------------------------------
Section 345 of the Bankruptcy Code governs a debtor's deposit and
investment of cash during a Chapter 11 case and authorizes
deposits or investments of money "as will yield the maximum
reasonable net return on such money, taking into account the
safety of such deposit or investment." READ FULL STORY
-----------------------------------------------------------------
[00022] DEBTOR'S MOTION TO CONTINUE INTERCOMPANY TRANSACTIONS
-----------------------------------------------------------------
The Debtors sought and obtained the Court's authority, on an
interim basis, to continue to honor and make payments with
respect to intercompany transactions in their existing cash
management system. READ FULL STORY
-----------------------------------------------------------------
[00023] DEBTORS' MOTION TO HONOR PREPETITION EMPLOYEE OBLIGATIONS
-----------------------------------------------------------------
The Debtors employ about 18,100 employees, of whom 6,100 are
full-time employees, 11,400 are part-time employees, and 600 are
contingent employees who are required to work one shift per month
and usually do so at special events. About 16,340 employees are
paid on an hourly basis and 1,760 employees are paid a fixed
salary. READ FULL STORY
-----------------------------------------------------------------
[00024] DEBTORS' MOTION TO HONOR PREPETITION VENDOR OBLIGATIONS
-----------------------------------------------------------------
An integral component of the Debtors' retail operations is the
efficient flow of inventory to their distribution centers, stores
and customers. Accordingly, the Debtors rely heavily on numerous
common carriers, movers, shippers, warehousemen, customs brokers
and certain other third-party vendors and service providers to
ship, transport, store, move through customs and deliver
inventory through established distribution networks. READ FULL STORY
-----------------------------------------------------------------
[00025] DEBTORS' MOTION TO HONOR PREPETITION CUSTOMER PROGRAMS
-----------------------------------------------------------------
The Debtors engage in certain marketing and sales practices that
are generally targeted to develop and sustain positive
reputations for their stores and merchandise in the marketplace;
and designed to attract new customers to their stores and to
enhance store loyalty and sales among their existing customer
base. READ FULL STORY
-----------------------------------------------------------------
[00026] DEBTORS' MOTION TO PAY PREPETITION TAXES
-----------------------------------------------------------------
In the ordinary course of business, the Debtors incur taxes and
assessments that can be classified as (i) Sales and Use Taxes;
(ii) Import Taxes; (iii) Franchise and Income Taxes; (iv) Real
and Personal Property Taxes; and (v) Business License
Assessments, Annual Report Taxes and other charges and
assessments. READ FULL STORY
-----------------------------------------------------------------
[00027] BORDERS' BANKRUPTCY FILING TRIGGERS PAYMENT OBLIGATIONS
-----------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Borders Group, Inc. acknowledged that the filing of
its Chapter 11 petition constituted an event of default under its
pre-bankruptcy Credit Agreement and Term Loan Agreement with
certain lenders. READ FULL STORY
-----------------------------------------------------------------
[00028] BORDERS RECEIVES NOTICE OF STOCK DELISTING FROM NYSE
-----------------------------------------------------------------
Borders Group, Inc. informed the U.S. Securities and Exchange
Commission that it received a notice on February 16, 2011, that
the New York Stock Exchange, Inc. had determined that the listing
of the Company's common stock should be suspended immediately as
a result of the bankruptcy filing of the Company and certain of
its affiliates. READ FULL STORY
-----------------------------------------------------------------
[00029] BORDERS' BANKRUPTCY MAY THWART BILL ACKMAN'S MERGER PLANS
-----------------------------------------------------------------
Borders Group, Inc.'s Chapter 11 filing on February 16, 2011, may
be a major obstacle to William Ackman's vision to merge the
bankrupt bookstore company with Barnes & Noble Inc., according to
analystsREAD FULL STORY
-----------------------------------------------------------------
[00030] MALL OWNERS SEEK TO APPEAR IN BORDERS' BANKRUPTCY CASE
-----------------------------------------------------------------
Simon Property Group, Inc. and GGP Limited Partnership, as direct
and indirect owner of landlord or managing agent for certain
malls of General Growth Properties, Inc., filed separate notices
of appearance and requests for copies of all notices and
pleadings in Borders Group, Inc.'s Chapter 11 case. READ FULL STORY
No comments:
Post a Comment