Following the news last night that it might have a buyer, Borders Group got a little more good news today: It’s been granted 120 more days to prepare a turnaround plan for exiting Chapter 11 bankruptcy. If U.S. Bankruptcy Judge Martin Glenn had not granted the extension, the bankrupt bookseller would have had to submit its plan by June 16.
Borders creditors had objected to the extension, saying that the company had been losing too much money since it filed for bankruptcy on February 16, even though it’s closed over 226 stores in that time.
Last night, the WSJ reported that private equity firm The Gores Group is considering making an offer to buy about 200 of the chain’s remaining 405 stores for around $200 million. At the hearing today, Borders attorney Andrew K. Glenn, of Kasowitz Benson Torres & Friedman, said that other buyers for the the majority of the chain’s remaining stores have also emerged, and that he expects to file a motion to sell it within two to four weeks. However, he said that the company has not abandoned a standalone reorganization plan.
Glenn intimated that the creditors committee had leaked Gores Groups’ offer, Publishers Weekly reports: “One of the buyers met with the Creditors Committee and then we see there are news stories in the Wall Street Journal…we’re getting slaughtered in the press,” he said. A creditors committee attorney, Bruce Buechler, denied a leak and said that the creditors are “not looking to hijack the process.”