FAQs for Vendors about Borders' Reorganization
Borders Group, Inc. has received approval from the Bankruptcy Court to conduct a Court-supervised auction under Section 363 of the U.S. Bankruptcy Code, with a “stalking horse” bid comprising an orderly sale of all the store assets of the business by a joint venture led by Hilco and Gordon Brothers if a going concern buyer is not the successful bidder. We expect to conclude this process by the end of July.
- Why is Borders pursuing a sale?
As part of the reorganization process, we have carefully evaluated the alternatives for bringing the Chapter 11 process to conclusion. We strongly believe that an auction process represents the best path forward, both as a means to position the business for a successful future and to maximize value for our stakeholders.
- What happens to the proceeds from the sale?
The proceeds of the sale would go to the Debtors' estate and would be put toward satisfying claims in the case.
- Does this mean that any claims I have in the case are more likely to be paid?
We think that a sale of the business represents the best path for maximizing value for our stakeholders, including creditors.
- Is there any chance the case could be converted to a Chapter 7 liquidation?
Borders Group, Inc. has received approval from the Bankruptcy Court to conduct a Court-supervised auction under Section 363 of the U.S. Bankruptcy Code, with a “stalking horse” bid comprising an orderly sale of all the store assets of the business by a joint venture led by Hilco and Gordon Brothers if a going concern buyer is not the successful bidder.
- Will vendors be paid for outstanding invoices?
We are continuing to meet our post-petition obligations. Outstanding pre-petition invoices will be addressed through the claims process.
- Does the Company plan to close additional stores?
Our stores are open and serving customers as usual. As we work to complete the restructuring process, there may be additional stores that close based on performance or the requirements of the winning bidder.
- What is the definition of "pre-petition"?
Pre-petition means before the filing of the petition commencing the Chapter 11 case. In this case, the petitions for Borders Group and its subsidiaries were filed on February 16, 2011. Amounts owed for goods received or services provided before the Chapter 11 filing are considered "pre-petition."
- What is the definition of "post-petition"?
Post-petition means after the filing of the petition commencing the Chapter 11 case, or in this case, after February 16, 2011. Amounts owed for goods received or services provided after the Chapter 11 date are considered "post-petition."
- If I have a pre-petition claim, what is the process for receiving payment?
Pre-petition claims will be addressed through the Chapter 11 process. Information on the claims process will be made available at a future date.
- Has Borders hired a claims agent?
The Garden City Group is serving as Borders's claims agent. Further information is available on the claims agent's site at www.bordersreorganization.com, or by calling (877) 906-7675 or by emailing email@example.com.
- Where can I get more information?
Updates about our progress will be available at www.bordersreorganization.com. If you have further questions after reviewing this site, please call our new Reorganization Information Line toll-free at (877) 906‑7675. You can also visit our claims agent's site at www.bordersreorganization.com or email firstname.lastname@example.org.
- How can I determine if Borders believes I am a creditor? How can I check to see the amount of my claim against Borders?
Borders filed its Schedules of Assets and Liabilities (the "Schedules") and its Statements of Financial Affairs (the "SoFAs") on March 30, 2011. If Borders believes you are a creditor, you and your claim will appear in the Schedules. Following the entry of an order establishing the Bar Date, Borders’s noticing and claims agent, The Garden City Group, Inc. ("GCG"), will mail to you a customized claim form to complete and return if you disagree with the amount and/or classification of your scheduled claim or the specific Borders entity against which your claim is scheduled.
- What if I do not appear on the Schedule(s)?
If you do not appear on the appropriate Schedule(s) you must complete a Proof of Claim form and return it to GCG, Borders’s noticing and claims agent, at the address and in the manner specified on the Proof of Claim form and accompanying Bar Date Notice. Further information is available on Borders’s case administration website at www.bordersreorganization.com, or by calling (877) 906-7675 or by emailing email@example.com.
- Where is my claim form and how do I file it?
On April 18, 2011, GCG mailed Bar Date Notices and Proof of Claim forms to all parties on Borders’s creditor matrix, including all creditors with scheduled claims. Please carefully review the notice materials you receive in the mail. If you believe you have a claim against Borders for a matter or obligation that arose prior to February 16, 2011, you must file a Proof of Claim by June 1, 2011 in accordance with the procedures set forth in the notice.
- By when must I file my claim?
All claims for creditors must be filed by June 1, 2011. Claims received from non-governmental entities after June 1, 2011 will not be valid.