Borders US gets more 'breathing room'

<p>Borders US has been granted more &quot;breathing room&quot; by its leading shareholder Pershing Square.&nbsp; Pershing has agreed to a one-year extension of its $42.5m loan to the company, which will now expires on 1st April 2010. It is the third time it has extended the agreement, and will be a huge relief for US publishers as concerns grow over the future of America&#39;s second biggest book chain.<br /><br />As part of the deal Borders US will retain Paperchase, with the &#39;put&#39; option agreed to by Pershing, which would have obliged it to buy the business, having been waived.<br /><br />Chief executive Ron Marshall, put in to run Borders by Pershing, said: &quot;The extension of the loan gives us some necessary breathing room, which is important in the current economic environment.&quot;</p><p>The deals were part of refinancing agreement put in place by Borders US in March last year. </p>