Borders Faces Liquidation After Bid Falls Through

Law360, New York (July 13, 2011, 6:30 PM EDT) -- Borders Group Inc. is facing possible liquidation after a $215 million offer to buy the bankrupt bookstore chain collapsed late Wednesday evening, after creditors and landlords objected to the deal from private equity group Najafi Cos.

Najafi pulled its stalking horse bid after the parties criticized the deal, which would allow the private equity firm to liquidate inventory of the entire chain of retail stores. Creditors said Wednesday that Borders' back-up bid would do the same, but generate more cash.

Najafi, which had said it wanted...
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