News
Court Approves Borders Dissolution Plan
posted on by Kimberly Grace
The retail news source ICv2 reported on Wednesday that the Borders bookstore chain's plan to dissolve has been approved by a federal bankruptcy court. The dissolution plan will pay unsecured creditors who owe more than US$800 million toward the higher end of a 4% to 10% range on their debt. The plan will pay secured creditors of US$2 million and priority tax liabilities of US$14 million. The court also approved Borders to sell its 10% stake in the e-reader company Kobo for US$27 to $32 million. About 98% of creditors voted to to approve the dissolution plan.
Borders filed for bankruptcy in February. The company held inventory worth US$431.7 million, total assets worth US$696.5 million, and total liabilities worth US$1 billion before it began liquidating in July.
Source: ICv2
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