Borders Execs Resign Amid Credit Fears

NEW YORK ( TheStreet) -- Borders ( BGP) is giving up its earlier gains following the resignation of two executives.

Thomas D. Carney, executive vice president, general counsel and secretary, resigned on Jan. 2, while D. Scott Laverty, senior vice president, chief information officer, stepped down on Monday.

These resignations come following a report from the Wall Street Journal earlier today that one of the bookseller's major suppliers is temporarily halting the shipment of books to the retailer.

Borders said last week that it is postponing payments to some publishers, which resulted in a 22% plunge in shares on Friday. The company also warned that it is facing trouble obtaining new financing, which could result in a violation of credit agreements in 2011.

Shares of Borders are plunging 10.4% to 86 cents in after-hours activity, after ending the day up 6.6%.

--Written by Jeanine Poggi in New York.

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