Borders Group Inc
Borders, whose shares jumped about 40 percent in after-hours trading, said on Thursday that GE Capital, part of General Electric Co
Borders said the facility would give it the financial flexibility and an appropriate level of liquidity to move forward with a restructuring plan that includes closing stores, cutting costs, expanding its rewards program and expanding its assortment of non-book offerings. The plan is aimed at improving cash flow and profits.
GE Capital's commitment is subject to a host of conditions, including the successful syndication of $175 million in credit from other lenders and $125 million of junior debt financing.
The company also said it was prudent for it to explore alternative avenues, including the possibility of restructuring its debt under court supervision.
Borders shares rose to $1.13 in after-hours trading from their close at 81 cents on the New York Stock Exchange.
(Reporting by Martinne Geller; editing by Andre Grenon)