

Two Borders Execs (CIO & General Counsel) Resign - patrickgzill
http://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/45671-two-borders-execs-resign-b-n-issues-statement-on-special-terms-.html

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patrickgzill
I couldn't fit it into the title, but B&N (major Borders Bookstore competitor)
issued a statement as well, pointing out that if Borders is offered special
terms, those same terms should be available to other bookstores as well.

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noahc
Does anyone know what it would cost to buy borders or how you would start to
evaluate a private equity buyout?

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patrickgzill
Looks like Bennet LeBow and his group beat you to it ...

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Umalu
Equity is worth $80 million (and dropping). A buyer would also have to deal
with about $500 million in debt, probably repay it.

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noahc
Equity is worth 80 Million. He was able to take control with $25 million when
the share price was ~2.5x of what it is today. So for $10 million you could
take control. Why couldn't you spend $10 million and then declare bankruptcy
canceling all/most debts? Would you be better off letting them declare
themselves and then going in and buying the the assets your self?

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Umalu
Problem is if borders declares BK, it will wipe out your equity and give
control to creditors. If you thought BK likely, better strategy may be to buy
debt if you can.

