Dec 20, 2011
With this morning's court approval of Borders's liquidation plan
and the sale of its Kobo interest and IP addresses, publishers will do
better than expected in terms of recouping their losses with the
bankrupt chain. While Borders originally anticipated paying 4¢ to 10¢ on
the dollar to creditors, it will likely be at the high end and could
even exceed that, according to attorney Andrew Glenn.
There is expected to be a claim recovery pool of between $80
million to $90 million in funds to pay creditors. In fact much of the
hearing was taken up with Kobo, which alone will bring in $27million to
$32 million, assuming that lawyers can prevent a tax bite that could be
as large as $10 million.
Borders's agreement with Next Jump was also approved and the Court
gave preliminary approval to the Pinsker settlement. The latter paves
the way for a mid-February Fairness hearing and distribution to workers
in the company's Michigan facility, who filed for moneys owed under the
WARN motion.
Now that the liquidation is just about complete, Judge Martin Glenn
took the opportunity to thank the attorneys for both Borders and the
Creditors Committee. "I think you've all worked cooperatively in
difficult circumstances," he said. "You've all worked rapidly which has
maximized the estate, and as in the Kobo sale, the stars were aligned."
*From PW Daily
No comments:
Post a Comment