Borders said Sunday it is delaying payments to maintain liquidity while it refinances or restructures its existing credit facilities.
The cash-strapped bookseller added that it "understands the impact of its decision," which some investors believe could include a filing for bankruptcy protection.
made the announcement on the heels of receiving a $550 million conditional commitment from
As part of the agreement, the book retailer must shutter stores, and seek financing with other lenders, vendors and landlords. The conditions include Borders securing $175 million in credit from other lenders and $125 million of junior debt financing.
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This article was written by a staff member of TheStreet.