Facing DIP Default, Borders Asks To Liquidate 51 Stores

Law360, New York (June 9, 2011, 2:36 PM EDT) -- Bankrupt bookseller Borders Group Inc. reluctantly asked a New York judge on Thursday for permission to liquidate an additional 51 stores or else face defaulting on a $505 million line of credit.

Borders, which has already shuttered and liquidated 226 locations, would have to close additional stores across the country — including some of the company's most profitable — if it cannot get landlords to agree to extensions of the Sept. 14 lease rejection deadline set under the loan, according to a motion filed Thursday....
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