Unless publishers undergo a change of heart, it appears likely that many will reject Borders’ proposal to exchange missed payments for notes. According to several sources, Borders wanted another meeting with publishers this week, but was turned down. In addition to being unhappy with the financial terms of the deal, publishers are not convinced that the chain has a viable turnaround plan. The chain, one publisher said, has made no compelling case about its future plans. Asked about how its discissions with publishers were proceeding, Borders issued the following statement: "We have a business strategy to reposition Borders business and brand for the long term. In this regard, we are focused on our refinancing effort.”

Borders wants an answer to its offer before the end of the month; January checks for publishers are due to be sent Friday. Publishers’ acceptance of Borders’ proposal is a key part of its effort to receive new financing. It is unclear what Borders’ next step will be if publishers decide not to go along with its offer.