Borders Reviews Financing Options; Delays 10-K

-- Publishers Weekly, 4/2/2008 2:52:00 PM

Borders announced Tuesday afternoon that it was delaying the filing of its year end 10-K report until April 17. The retailer said the extra time is needed to complete its review of financing alternatives. In late March, Borders’s largest shareholder, Pershing Square Capital Management, agreed to lend the company $42.5 million at a 12.5% interest rate. As part of the agreement, Borders has until April 4 to find another source of funds. In its release, Borders said the company “has entered into discussions with several parties regarding alternative financing proposals.” No decisions on accepting a new loan had been reached as of April, 2, making a delay in the 10-K necessary.