NEW YORK Jan 14 Bookseller Borders Group Inc
BGP.N, which is in talks to secure a $500 million credit
line, has hired bankruptcy and restructuring lawyers, the Wall
Street Journal reported on Friday.
Citing people familiar with the matter, WSJ said on its
website that Borders has chosen law firm Kasowitz, Benson,
Torres & Friedman to advise on its current refinancing efforts.
Kasowitz's instructions are to keep the company out of
bankruptcy court, the report said, citing one of the sources.
Kasowitz met on Thursday with publishers to pitch them on a
plan to defer payments and is talking with GE Capital about
providing a new revolving credit facility that would replace
existing debt, the source said.
The new credit line would provide about $500 million in
fresh capital and perhaps more, allowing Borders to repay some
$220 million in current outstanding senior debt, the newspaper
said. Borders hopes the new financing can provide a bridge for
the company over the next six to 12 months while it rearranges
its business, the source said.
WSJ.com said representatives for Borders and GE Capital
declined to comment. Reuters could not immediately reach either
(Reporting by Steve James; editing by Carol Bishopric)