BORDERS GROUP: Receives Non-Compliance Notice from NYSE

Troubled Company Reporter , Feb 07, 2011 ( Source: TCR)

Borders Group, Inc. reported that on Feb. 3, 2011, it was notified
by NYSE Regulation, Inc. that it was not in compliance with the
continued listing standard of the New York Stock Exchange, Inc.
requiring a minimum average closing price of $1.00 per share over
a consecutive 30 trading day period. Subject to providing
required notice to the NYSE, the company is entitled to a six-
month period from the date of the notification to cure this
deficiency. During this period, Borders' shares would continue to
be listed and traded on the NYSE, subject to its compliance with
other NYSE continued listing standards.

About Borders Group

Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE:
BGP) -- http://www.borders.com/ -- is a specialty retailer of
books as well as other educational and entertainment items. It
employs 19,500 throughout the U.S., primarily in its Borders(R)
and Waldenbooks(R) stores. Borders is the nation's second-largest
bookstore chain by revenue, behind Barnes & Noble Inc.

As of October 30, 2010, Borders had total assets of
$1.35 billion, total liabilities of $1.40 billion, and a
stockholders' deficit of $40.8 million.

Borders received a financing commitment of $550 million from the
General Electric unit on Jan. 27. The funding had several
conditions including securing $175 million from other lenders and
$125 million in junior debt provided by vendors and lenders. The
funding is also contingent on Borders completing a program to
close stores. Borders said on Dec. 30, 2010, that it was
delaying payments to some publishers.

News sources report that Borders has tapped Jefferies & Co. for
investment banking services, has turned to Kasowitz, Benson,
Torres & Friedman for legal advice, and has hired restructuring
specialist FTI Consulting Inc. for additional advice and counsel.
The New York Times has reported that Lowenstein Sandler is
providing legal counsel and Alvarez & Marsal is providing other
corporate restructuring guidance to a group of publishers.