Borders close to securing refinancing: report

Fri Jan 14, 2011 2:40am EST

A customer is seen through the window of a Borders book store in New York, March 16, 2010. REUTERS/Brendan McDermid

A customer is seen through the window of a Borders book store in New York, March 16, 2010.

Credit: Reuters/Brendan McDermid

(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.

(Reporting by Jennifer Robin Raj in Bangalore; Editing by Hans Peters)