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Borders Group is facing a "critical" deadline for the repayment of a $42.5m (£28.1m) loan to a New York hedge fund, http://www.annarbor.com/business-review/new-york-hedge-fund-manager-may-... target="_blank">AnnArbor.com reports.
The loan, which is owed to Pershing Square Capital Management investor William Ackman, and is due to be repaid on 1st April, has already been renegotiated three times.
The local paper reported that "Borders may be forced to fork over cash vital to its daily operations" if the loan is not extended, pointing out that the book chain had £32.8m in cash as of 31st October.
A spokeswoman for Ackman said he was not available for comment.
Marketing/Management Associates analyst Lou Kasman said: "Borders has poor operating revenue and not a lot of cash. I don’t see strong cash flow, so meeting debt is questionable. Whether the lenders will change payment requirements is the question.”
Borders spokeswoman Mary Davis said via email. “Borders is always looking for opportunities to improve performance and profitability. Any recent changes are a continuation of our efforts."