Bookseller Borders Group Inc , which is in talks to secure a $500 million credit line, has hired bankruptcy and restructuring lawyers, the Wall Street Journal reported on Friday.
Citing people familiar with the matter, WSJ said on its website that Borders has chosen law firm Kasowitz, Benson, Torres & Friedman to advise on its current refinancing efforts. Kasowitz's instructions are to keep the company out of bankruptcy court, the report said, citing one of the sources.
Kasowitz met on Thursday with publishers to pitch them on a plan to defer payments and is talking with GE Capital about providing a new revolving credit facility that would replace existing debt, the source said.
The new credit line would provide about $500 million in fresh capital and perhaps more, allowing Borders to repay some $220 million in current outstanding senior debt, the newspaper said. Borders hopes the new financing can provide a bridge for the company over the next six to 12 months while it rearranges its business, the source said.