was once again seeing heavy action in extended trading, rising 17% to $1.01 on volume of 1.4 million. The struggling bookseller has been working to refinance a hefty debt load and the
Wall Street Journal
reported on Thursday it was
engaged in talks with restructuring advisors
, including Jefferies & Co.
The article said the company is also in discussions with one of its lenders,
, about entering a new debt agreement to replace its existing senior credit facility. The
also said GE Capital had asked Borders to explore which of its vendors would be willing to delay receiving some payments from the company.
Borders, which counts
William Ackman's hedge fund firm Pershing Square Capital Management
as its biggest investor with a stake of 41.8% stake, had a debt net of cash balance of $331.1 million as of Sept. 30. Based on a regular session close at 86 cents on Thursday, the stock had lost 26% since reports first surfaced of the company
delaying vendor payments
lurched lower after the company
slashed its profit outlook
following a weak December for its Lucky Brand, Juicy Couture and Mexx Europe brands.
The stock was last quoted at $5.69, down 17.5%, on volume of around 950,000. The shares gained more than 15% in 2010, and more than doubled after scraping a 52-week low of $3.90 on July 1.
Liz Claiborne said it now projects the improvement in its adjusted operating income at $40 million to $50 million for the second half of fiscal 2010, which ended in December. Its previous view called for an improvement of $80 million.
Written by Michael Baron in New York.
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