CORRECTED - UPDATE 1-Borders gets more time to negotiate leases

Tue Mar 15, 2011 12:15pm EDT

(Corrects bullet point and second paragraph to show Borders gets 90 additional days, not 120 days, to negotiate leases)

* Borders gets 90 more days to negotiate leases

* Added time kicks in after June 16

* Extension requested by lenders

NEW YORK, March 15 (Reuters) - Bankrupt bookseller Borders Group Inc BGPIQ.PK received U.S. Bankruptcy Court approval on Tuesday for an extension it requested to give it more time to negotiate its store leases.

Borders asked for an additional 90 days, which would kick in after it hits the current June 16 deadline for rejecting leases.

The extension is one of the requirements of Borders' proposed bankruptcy financing and was requested by its lenders, who said the time would be necessary if they need to liquidate stores.

Borders filed for bankruptcy last month after years of struggling to compete with online book sales and a sluggish response to electronic book readers.

The company said when it filed for bankruptcy that it planned to close 200 superstores, which stock more than 100,000 titles. After the initial wave of closings, the chain expected to have about 442 stores.

The case is In re: Borders Group Inc, U.S. Bankruptcy Court, Southern District of New York, No: 11-10614. (Reporting by Caroline Humer; writing by Tom Hals)

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