Borders GroupBorders Group ( BGP) 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, GE Capital, about entering a new debt agreement to replace its existing senior credit facility. The WSJ 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.