Borders Group Confronts Crucial Deadline

By Jason Boog 

borderslogo23.pngOn Thursday, Borders Group must confront a deadline on a $42.5-million loan. As that fateful day approaches, publishing commentators around the Internet have shared opinions.

A Detroit Free Press article speculated over the weekend: “The $42.5-million loan due to Pershing Square Capital Management–made in 2008 at 9.8 percent interest–has already been extended three times. And despite assurances from Pershing that a bankruptcy is unlikely, concerns about a filing persist.”

Earlier this year, Pershing Square CEO William Ackman said bankruptcy was a “low probability event.”

Forbes speculated that the company “could sell a stake to another investor.”

Finally, Daily Finance asked: “On April Fool’s Day, Will the Joke Be on Borders?