Bankrupt Borders Wins Access To $400M In Funds

Law360, New York (February 16, 2011, 11:27 AM EST) -- Borders Group Inc. won approval Wednesday to tap $400 million in financing from a group of lenders including General Electric Capital Corp., fast on the heels of the bookseller's filing for Chapter 11 protection.

Judge Arthur J. Gonzalez granted Borders' request during a hearing in the U.S. Bankruptcy Court for the Southern District of New York, allowing the company to access about 80 percent of a debtor-in-possession financing package totaling $505 million.

A lawyer for the debtor, which filed its bankruptcy petition earlier Wednesday, said that...
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