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Summary:

Random House and Borders have proposed an amount the publisher is owed from the bookseller’s bankruptcy.

Borders sale
photo: Getty Images / Jeff J. Mitchell

Random House and Borders have proposed an amount the publisher is owed from the bookseller’s bankruptcy.

Corrected: An earlier version of this story incorrectly suggested that Random House would be paid $36 million. That amount instead represents the figure that Random House and Borders agree the claim is worth. It remains unclear how much the publisher will be paid.

In a court filing on Monday, the bankrupt bookseller and Random House proposed a plan that would have the publisher claim $36.4 million — less than $1 million short of the $37.2 million it had been seeking.

Random House, owned by privately-held German publishing giant Bertelsmann, was Borders’ fourth largest unsecured creditor when the struggling retailer filed for bankruptcy in February. It is one of several large publishers holding unpaid trade debt. The largest is Penguin Putnam which is owed about $41 million according to the initial Chapter 11 filing.

In Monday’s court filing, Borders says 3,960 different creditors have made claims to be paid. Many of these claims are likely to be disqualified for being late or otherwise invalid. Random House and Borders will put their plan, which has the support of a committee of unsecured creditors, before a bankruptcy judge for approval on November 14.

Borders collapsed once and for all in July after being unable to find a buyer to rescue it from bankruptcy. It has since liquidated its stores and sold its website and trade name to rival Barnes & Noble.

  1. It is so sad to see that all the great bookstores like Boreders just disapear! 

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