The chances that Borders may be sold as one business or piecemeal appears to becoming more of a possibility. Last Friday was the deadline for the submission of bids to the company’s investment bankers and financial advisors, Jeffries & Company. Any bids would have to be approved by the Creditors Committee and the U.S. Trustee. In addition, at the hearing on May 11, Borders is asking the court’s approval to sell or transfer de minimus, or “surplus, non-core or burdensome,” assets clear and free of lien. These would be items going to a single buyer or group of buyers for $1 million or less.
An example cited in the filing concerns property at the Northeast Distribution Center in Carlisle, Pa., which is slated to close soon. Borders says that it would cost too much to extend the lease on the center to give brokers and equipment liquidators the 75 to 90 days they would need for an onsite auction. In order to vacate in less than 30 days from closing, they want to be able to sell the equipment and other assets there themselves. They are also seeking to sell equipment and furniture in corporate headquarters.
So far only one objections has been raised. Verizon is concerned that Borders may try to sell equipment that it leased to them.
