Today’s Borders’s hearing was a rather routine affair until lawyers for both sides approached the bench after Judge Martin Glenn asked for an update on where things stood. After returning from a brief meeting out of earshot from those listening on the phone, the judge adjourned the hearing. Speculation is that the attorneys were updating the judge on whether any bids for the company were made on Friday. Sources told PW that at least one bid was in fact made.
Prior to the recess, almost every item on the agenda was approved. Lease terminations for several properties were granted that netted the estate $430,000 along with rent reductions at six stores for $11.25 million. Borders also was granted its request to extend the deadline for removing pending civil actions, of which there are 75 at present.
The one sticking point, the motion to sell off piecemeal parts of the business caused by store closing sales and the closure of a distribution center, is to be redrafted. Judge Glenn said that he will issue an opinion in the next day or two about de minimus motions. “This is coming up in other cases where people are cutting corners,” he noted, adding “I understand that the goal is a streamlined procedure.” The revised motion will include notification for lien holders, requisites for granting good faith, and a list of professionals that will be retained for the sales.
