NEW YORK May 20 The bookstore chain Borders
Group Inc BPIQ.PK on Thursday asked a bankruptcy court judge
to extend the time during which it has exclusive rights to
propose a reorganization plan to its creditors.
In its filing in Bankruptcy Court in New York, Borders
cited the size and complexity of the Chapter 11 proceedings and
asked Judge Martin Glenn to add an additional 120 days to the
exclusivity period that prevents outside bidders from proposing
alternate arrangements to creditors.
Borders said the court should grant an extension, common
in bankruptcy proceedings, to enable it "to formulate a
bankruptcy exit strategy that will maintain (its) business as a
The judge is scheduled to consider the request on June 2,
nearly four months after Borders initially filed for bankruptcy
protection with liabilities of about $2.6 billion and assets of
In its latest filing, Borders said its restructuring work
had so far included shuttering 237 of 642 stores and reviewing
more than 1,000 contracts and leases from which it is looking
to save money.
In a separate court filing on Thursday, Borders asked the
court for permission to end its relationship with the Starbucks
(SBUX.O) unit Seattle's Best Coffee (SBC), which had cafes in
more than 400 Borders stores before the bankruptcy. Borders
said the partnership resulted in "excessive" royalty payments.
The case is In re Borders Group Inc, U.S. Bankruptcy
Court, Southern District of New York, No. 11-10614.
(Reporting by Jeff Roberts and Nick Brown)