NEW YORK ( TheStreet) -- Borders ( BGP) stock is surging after the company said it will receive a $550 million in refinancing from GE Capital. But this lifeline does not mean a bankruptcy filing is off the table.

As part of the agreement, the burdened bookseller 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.

>>The Borders Story: Is This the Final Chapter

"We view the refinancing route as the most practical, efficient and beneficial to all parties, and we are working with our vendors in this regard," CEO Mike Edwards said. "At the same time, given the current environment surrounding Borders, and in order to assure that the company can pursue its efforts to position itself to properly implement its business plan, it is prudent as well for Borders to explore alternative avenues."

Since the beginning of the New Year, Borders has laid off employees, announced plans to shutter a distribution center, said it would sell off its calendar business and lost two top executives.

Share of Borders are spiking 19% to $0.96 in Friday morning trading.

--Written by Jeanine Poggi in New York.

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