Borders' lawyers hope to stave off bankruptcy

Borders' lawyers hope to stave off bankruptcy

<p>Borders Group is continuing talks to a secure a $500m credit line and has hired bankruptcy and restructuring lawyers, reports the<em> Wall Street Journal</em>. It has also begun to offer collateral along with the notes promising deferred payments to publishers, but the piece does not identify what this might be.</p><p>Borders has chosen law firm Kasowitz, Benson, Torres &amp; Friedman to advise on its current refinancing efforts. Kasowitz&#39;s instructions are to keep the company out of bankruptcy court, according to people quoted by the <em>WSJ</em>. The new credit line would provide about $500m in fresh capital and perhaps more, this person said, allowing Borders to repay some $220m in current outstanding senior debt. Borders hopes the new financing can provide a bridge for the company over the next six to 12 months while it rearranges its business, this person said.<br /></p>